Financial Data and Key Metrics Changes - Total revenue for Q4 2023 was $5.1 billion, down from $5.4 billion in Q4 2022, while full-year revenue was $21.5 billion compared to $23.4 billion in the previous year [38] - Net income for Q4 2023 was $150 million, up from $118 million in Q4 2022, resulting in earnings per share of $7 versus $5.21 in the year-ago period [15] - EBITDA for Q4 2023 was $275 million, compared to $230 million in the same period last year, while full-year EBITDA was $1.06 billion, down from $1.2 billion [15][38] Business Line Data and Key Metrics Changes - Total merchandise sales per store per month reached approximately $205,000, about 15% higher than the Murphy network average [8] - Nontobacco growth accelerated in Q4 2023, with food and beverage sales and margin up 5.4% and 5.7% respectively on a per-store month basis [14] - The 74 new Murphy banner stores added over the last three years averaged about 290,000 gallons per store per month in 2023, nearly 20% higher than the network average [8] Market Data and Key Metrics Changes - Total volumes were up 1.1% in 2023 versus 2022, with per-store volumes of 242,000 gallons per month, finishing within the guided range [13] - The company captured roughly 12% of market share from competitors, with a 5.6% increase in per-store month volumes compared to a 7% decline in OPUS data [13] - Cigarette market share grew to 20%, with smokeless tobacco reaching 15% share of market [37] Company Strategy and Development Direction - The company is focusing on organic growth, targeting between 30 and 35 new stores in 2024, alongside 30 to 40 raise-and-rebuild opportunities [18][41] - Investments in digital transformation and personalized offers are expected to drive in-store sales and margin improvements [31][40] - The company aims to maintain its low-cost operator position while expanding its larger-format stores, ensuring operational efficiency [54][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining higher margins and capturing more market share despite a challenging macroeconomic environment [49][50] - The company anticipates a slight increase in fuel volumes in 2024, offsetting flat to slightly declining legacy stores [63] - Management highlighted the importance of maintaining affordability for customers, especially in the current economic climate [28][131] Other Important Information - The effective tax rate for Q4 2023 was 23.6%, with full-year rates at 24.2% [16] - The company repurchased 442,000 shares during Q4 and over 1 million shares for the full year, resulting in a cash balance of $118 million at year-end [42] - Capital expenditures for 2023 totaled $344 million, with a significant portion earmarked for growth projects [65] Q&A Session Summary Question: Position as a low-cost operator and larger-format stores - Management confirmed that they can maintain low-cost discipline while expanding larger-format stores, focusing on fuel margin requirements and coverage ratios [54][56] Question: Visibility into merchandise contribution growth - Management indicated that tobacco sales continue to lead, with significant growth in food and beverage contributions, particularly in the QuickChek brand [58] Question: Sustainability of fuel margins and inside store EBITDA growth - Management emphasized that while fuel margins are important, the merchandise side of the business has also seen substantial growth, contributing to overall EBITDA [61][87] Question: Fuel volume guidance and competitive pricing - Management expects fuel volumes to remain flat to slightly up, leveraging their low-cost pricing strategy to maintain competitiveness [63][112] Question: Capital allocation and share buybacks - Management plans to continue share buybacks while ensuring that capital expenditures are funded through operating cash flows [115][116]

Financial Data and Key Metrics - Revenue for Q3 2023 was $5.8 billion, down from $6.2 billion in the year-ago period [21] - Adjusted EBITDA was $306 million, compared to $367 million in Q3 2022 [21] - Net income was $167.7 million, or $7.69 per share, versus $219.5 million, or $9.28 per share, in the prior year [21] - Average retail gasoline prices were $3.41 per gallon, down from $3.67 per gallon in Q3 2022 [21] - Total debt as of September 30 was approximately $1.8 billion, with $125 million in cash and cash equivalents [21] Business Line Performance - Same-store fuel volumes were down 4.7% YoY, but the 2-year stack remained strong at 4.3% [11] - Food and beverage sales grew by 6.1%, with contribution dollars up 5.7% [15] - Nicotine business outperformed, gaining share in all key categories [16] - Merchandise business has seen high single-digit growth rates in sales and margin dollars over the past 4 years, a trend expected to continue into 2024 [16] Market Performance - The Northeast region saw improved margins and traffic, driven by promotional activities and innovative food and beverage concepts [62] - Diesel fuel supply tightness had a marginal impact on the business, with no significant negative effects [55] Strategic Direction and Industry Competition - The company is focusing on sustainable growth through fuel volatility, in-store performance optimization, and customer-centric investments [9] - New stores are accretive to the network average, delivering higher volumes, merchandise sales, and margins [14] - The company is investing in digital transformation and in-store experience campaigns to extend its competitive advantage [19] - Plans include renovating up to 50 stores in 2024 and building new "store of tomorrow" formats [25][59] Management Commentary on Operating Environment and Future Outlook - Management highlighted the resilience of the business model, with a tenfold increase in shareholder value since the spin-off [19] - The company expects 2023 full-year results to be below 2022 levels but remains optimistic about sustainable growth and momentum heading into 2024 [8][28] - Fuel margins are expected to remain rational, with potential for higher equilibrium margins in 2024 [12] Other Key Information - The company closed 4 Quick Tech stores during the quarter, with plans to build new stores in strong markets [22] - Capital spending for 2023 is expected to be between $325 million and $375 million, below the guided range due to delays in new store construction [22] - The company repurchased $65 million worth of shares during the quarter [21] Q&A Session Summary Question: PS&W Margin Contribution - The margin contribution was driven by low volatility and inventory gains, contrasting with the prior year's price declines [32] Question: Tobacco Market Dynamics - The company is gaining share in traditional combustible and noncombustible tobacco categories, while marginal players face challenges from illicit products [34] Question: Fuel Volume Stickiness - Despite a 4% YoY decline in same-store fuel volumes, the company attributes stickiness to its value proposition and customer loyalty programs [43][44] Question: Fuel Margin Equilibrium - Management plans to provide a suggested range for fuel margins in 2024 but will avoid specific guidance to focus on long-term sustainability [45] Question: Non-Cigarette Merchandise Performance - The company is focusing on improving food and beverage offerings, with early results from pilot stores showing strong customer uptake [47][48] Question: GLP-1 Drug Impact - Management believes it is too early to assess the potential impact of GLP-1 drugs on consumer behavior [51] Question: Diesel Fuel Supply Impact - Diesel supply tightness had a marginal impact, with no significant effect on the business [53][55] Question: Redesigned Store Performance - Early feedback from pilot stores with redesigned interiors and improved food and beverage layouts has been positive [57][58] Question: Northeast Market Improvement - The Northeast region saw improved margins and traffic due to promotional activities and innovative food and beverage concepts [62]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q MURPHY USA INC. (Exact name of registrant as specified in its charter) Delaware 46-2279221 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 200 Peach Street El Dorado, Arkansas 71730-5836 (Address of principal executive offices) (Zip Code) (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended Septemb ...

Murphy USA Inc. (NYSE:MUSA) Q2 2023 Earnings Conference Call August 3, 2023 11:00 AM ET Company Participants Christian Pikul - Vice President of Investor Relations Andrew Clyde - President and Chief Executive Officer Mindy West - Executive Vice President and Chief Financial Officer Conference Call Participants Anthony Bonadio - Wells Fargo Securities Benjamin Bienvenu - Stephens Inc. Bobby Griffin - Raymond James Bonnie Herzog - Goldman Sachs Operator Good morning, and welcome to the Murphy USA Second Quart ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission File Number 001-35914 MURPHY USA INC. (Exact name of registrant as specified in its charter) Delaware 46-2279221 ...

Financial Data and Key Metrics Changes - Revenue for Q1 2023 was $5.1 billion, consistent with the previous year [67] - Adjusted EBITDA decreased to $220 million from $277 million in 2022 [67] - Net income fell to $106.3 million or $4.80 per share, down from $152.4 million or $6.08 per share in Q1 2022 [67] Business Line Data and Key Metrics Changes - Retail fuel margins remained stable, averaging around $0.29 per gallon, with same-store gallons increasing by 1.4% year-over-year [32][33] - Merchandise sales and margins increased by 6% and 5% respectively, driven by strong performance in non-tobacco categories [33] - QuickChek's fuel gallons were down 0.4% on an APSM basis, while merchandise sales increased by 2.4% [34] Market Data and Key Metrics Changes - Average retail prices were $3.15 per gallon compared to $3.43 in the same period last year [38] - Same-store sales and margins at QuickChek faced challenges but showed mid-single-digit growth due to product innovation and price increases [62] - Customer traffic remained robust, contributing to strong merchandise performance despite lower fuel prices [114] Company Strategy and Development Direction - The company announced a new share repurchase authorization of up to $1.5 billion through 2028, aligning with long-term shareholder return expectations [23][66] - Investments in new stores and capabilities are expected to drive sustainable earnings growth and free cash flow generation over the next decade [23] - The company is focused on maintaining an everyday low-price strategy to attract and retain customers, especially in a potentially weaker consumer backdrop [49][78] Management's Comments on Operating Environment and Future Outlook - Management noted that the current quarter's results reflect strong fundamentals despite being a historically shoulder quarter [24] - The company is optimistic about future performance, citing ongoing investments and improvements in operational capabilities [41][42] - Management acknowledged the challenges posed by inflation and commodity price volatility but emphasized the company's resilience and strategic positioning [60][116] Other Important Information - Cash and cash equivalents totaled $102 million as of March 31, up about $40 million since year-end [39] - The company plans to open 35 to 40 new stores in 2023, including six new QuickChek stores [36] - The integration of QuickChek is largely complete, with synergies being captured and innovations being leveraged across both brands [80] Q&A Session Summary Question: Insights on Q1 fuel margins and market dynamics - Management explained that the stability in retail margins was due to a lack of volatility compared to the previous year, which saw significant price fluctuations [45][46] Question: Impact of a potential recession on the business - Management highlighted that their focus on affordability positions them well to attract customers who feel the effects of economic downturns [49][78] Question: Integration progress of QuickChek and its impact - Management noted that the integration is in the later stages, with significant learnings and innovations being shared between the two brands [80] Question: RIN sales performance and its impact on margins - Management clarified that RIN sales were up due to higher pricing, with a significant increase in average sale price compared to the previous year [92] Question: Guidance outlook in light of strong Q1 results - Management emphasized the importance of focusing on long-term growth potential rather than making short-term adjustments based on quarterly performance [88][116]

Financial Performance - For Q1 2023, the company reported net income of $106.3 million, or $4.80 per diluted share, on revenue of $5.1 billion, compared to net income of $152.4 million, or $6.08 per diluted share, on the same revenue in Q1 2022[147]. - Revenues for Q1 2023 decreased by $41.2 million, or 0.8%, due to an 8.2% decline in retail fuel sales prices, partially offset by a 4.9% increase in fuel sales volumes[148]. - Total fuel contribution for Q1 2023 was 28.9 cents per gallon, down from 34.0 cents per gallon in Q1 2022, while retail fuel margin dollars increased by 4.4%[138]. - Adjusted EBITDA for Q1 2023 was $220.2 million, down from $277.0 million in Q1 2022, reflecting a decrease of 20.5%[172]. - Cash provided by operating activities decreased by $189.5 million to $149.7 million in Q1 2023 compared to $339.2 million in Q1 2022[175]. - Net income for the Marketing segment decreased by $43.2 million to $125.9 million in Q1 2023, attributed to lower fuel contribution and increased operating expenses[159]. - Total revenues for the Marketing segment remained flat at approximately $5.1 billion for both Q1 2023 and Q1 2022, with excise taxes collected of $544.8 million in Q1 2023[160]. Expenses and Costs - Store and other operating expenses increased by $15.6 million, or 7.0%, in Q1 2023, primarily due to higher employee-related expenses and store maintenance costs[149]. - SG&A expenses for Q1 2023 increased by $12.8 million, or 27.7%, driven by higher professional and technology fees from business improvement initiatives[150]. - Total PS&W margin dollars, including RINs, decreased by $51.0 million from Q1 2022, despite an increase in RINs revenue of $38.7 million[162]. Capital Expenditures and Debt - The company anticipates total capital expenditures for the full year 2023 to range from approximately $375 million to $425 million, primarily funded through operating cash flow[141]. - Capital expenditures for the three months ended March 31, 2023, totaled $73.4 million, an increase from $69.1 million in the same period of 2022[203]. - As of March 31, 2023, total long-term debt net of current maturities was $1,789.4 million, a slight decrease from $1,791.9 million as of December 31, 2022[184]. - The outstanding balance of the term loan was $392.3 million at March 31, 2023, compared to $393.3 million at December 31, 2022[190]. - The company issued $300 million of 5.625% Senior Notes due 2027, $500 million of 4.75% Senior Notes due 2029, and $500 million of 3.75% Senior Notes due 2031, all fully guaranteed by Murphy USA[185][186][187]. Market Conditions and Risks - The average price of crude oil in Q1 2023 was $76 per barrel, compared to $95 per barrel in Q1 2022, indicating a more stable pricing environment[138]. - The company is exposed to market risks related to the volatility in the price of refined products, primarily gasoline and diesel, which can affect revenues and operating costs[208]. - The company faces risks from geopolitical events, severe weather, and global health pandemics that could impact supply and demand[206]. - Future tobacco or e-cigarette legislation could negatively affect revenues and gross margins[206]. - The company’s financial results may differ materially from expectations due to various factors, including inventory management and supply chain disruptions[206]. Operational Overview - The company operates a total of 1,720 stores across 27 states, with 1,562 under the Murphy brand and 158 under the QuickChek brand as of March 31, 2023[133]. - Total merchandise sales increased by 8.3% to approximately $966.2 million in Q1 2023 compared to $892.0 million in Q1 2022[159]. - Retail fuel margin dollars increased by 4.4% year-over-year, with total fuel volumes up by 4.9% and a retail fuel margin of 23.2 cents per gallon[161]. Financial Management and Strategy - The company has a committed cash flow revolving credit facility of $350 million, which was undrawn as of March 31, 2023, to support working capital and corporate purposes[173]. - The company utilizes limited derivative instruments for risk management, which are monitored by senior management[208]. - The company’s growth strategy includes anticipated store openings and maintaining good business relationships, particularly with Walmart[206]. - The company undertakes no obligation to update or revise any forward-looking statements based on new information or future circumstances[207].

Part I [Business](index=4&type=section&id=Item%201.%20Business) Murphy USA operates 1,712 retail stores across 27 states, primarily marketing motor fuel and convenience merchandise - The company's competitive strengths are built around five key pillars: - **Strategic Proximity to Walmart:** The majority of stores are near Walmart locations, generating significant customer traffic and leveraging fuel discount programs like Walmart+[15](index=15&type=chunk) - **Value Proposition:** Competitively priced fuel and low-priced tobacco products appeal to value-conscious consumers[17](index=17&type=chunk) - **Low-Cost Operating Model:** Smaller store footprints and a high percentage of owned properties (**76%**) contribute to lower overhead and operating costs[18](index=18&type=chunk) - **Distinctive Fuel Supply Chain:** Diverse sourcing options, shipper status on major pipelines, and a strong distribution system ensure reliable, low-cost fuel supply[19](index=19&type=chunk) - **Resilient Financial Profile:** A strong asset base and conservative financial structure enable the company to weather market volatility and return capital to shareholders[20](index=20&type=chunk) - Murphy USA's business strategy focuses on several key initiatives: - **Organic Growth:** Plans to build up to **45 new-to-industry (NTI) locations** and **30 raze-and-rebuilds** in 2023, with a target of up to **55 NTI stores annually** in the future[24](index=24&type=chunk) - **Merchandise Diversification:** Leveraging QuickChek's expertise to enhance food and beverage offerings across the network[25](index=25&type=chunk) - **Cost Leadership:** Implementing efficiency initiatives to control operating and overhead costs[26](index=26&type=chunk) - **Market Volatility Advantage:** Utilizing its supply chain to maintain low prices and consistent margins during fuel price volatility[27](index=27&type=chunk) - **Long-Term Investment:** Maintaining a strong financial position to support growth, dividends, and share repurchases[28](index=28&type=chunk) - As of December 31, 2022, the company had over **15,100 employees**, comprising **6,000 full-time** and **9,100 part-time** workers, guided by core principles of Integrity, Respect, Citizenship, and Spirit[59](index=59&type=chunk)[61](index=61&type=chunk) Store Network Overview (as of Dec 31, 2022) | Brand | Number of Stores | | :--- | :--- | | Murphy USA | 1,151 | | Murphy Express | 404 | | QuickChek | 157 | | **Total** | **1,712** | Key Operating and Financial Indicators (2018-2022) | Indicator | 2022 | 2021 | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Stores | 1,712 | 1,679 | 1,503 | 1,489 | 1,472 | | Total Fuel Contribution (cpg) | 34.3 | 26.3 | 25.2 | 16.1 | 16.2 | | Retail Fuel Margin (cpg) | 29.6 | 21.9 | 22.9 | 13.8 | 14.7 | | Gallons Sold/Store Month (thousands) | 244.6 | 229.4 | 219.5 | 248.3 | 244.0 | | Merchandise Sales/Store Month ($ thousands) | $193.5 | $186.7 | $166.3 | $148.7 | $139.7 | | Merchandise Margin (%) | 19.7% | 19.1% | 15.6% | 16.0% | 16.5% | [Risk Factors](index=15&type=section&id=Item%201A.%20Risk%20Factors) The company identifies numerous risks to its business, operations, and financial condition, notably commodity price volatility and Walmart reliance - **Business and Financial Risks:** - **Commodity Price Volatility:** Net income is significantly affected by volatile oil and gasoline prices, which can compress gross margins[85](index=85&type=chunk) - **Walmart Relationship:** A majority of Murphy branded stores are near Walmart Supercenters, making the relationship a key driver, and any deterioration could adversely affect operations[88](index=88&type=chunk) - **Indebtedness:** Existing debt could restrict business operations, limit flexibility, and make it more difficult to meet payment obligations[73](index=73&type=chunk) - **RINs Revenue:** Revenue generated from Renewable Identification Numbers (RINs) may not be sustainable due to fluctuating prices and regulatory uncertainty[89](index=89&type=chunk) - **Industry and Market Risks:** - **Intense Competition:** The company competes with other fuel retailers, including integrated oil companies and non-traditional retailers like supermarkets and discount clubs, on price, convenience, and consumer appeal[110](index=110&type=chunk) - **Tobacco Legislation:** Sales of tobacco products are a significant portion of merchandise sales, and future legislation, tax increases, or campaigns against smoking could adversely affect revenue and profits[112](index=112&type=chunk) - **Changes in Consumer Behavior:** The development of alternative energy technologies and increased adoption of electric vehicles could reduce long-term demand for gasoline[116](index=116&type=chunk) - **Pandemics:** Outbreaks like COVID-19 can disrupt supply chains, reduce customer traffic due to travel restrictions, and negatively impact demand for fuel and merchandise[108](index=108&type=chunk) - **Operational and Other Risks:** - **Supply Chain Reliance:** The company relies on third-party transportation and a single primary supplier (Core-Mark) for over **74%** of its merchandise, exposing it to supply interruption risks[91](index=91&type=chunk)[99](index=99&type=chunk) - **Environmental Regulations:** The business is subject to stringent environmental laws, which could expose it to significant expenditures and liabilities for remediation and compliance[122](index=122&type=chunk) - **Data Security:** A failure to protect sensitive customer, employee, or vendor data could result in financial loss, regulatory sanctions, and reputational damage[133](index=133&type=chunk) - **QuickChek Acquisition:** The anticipated benefits and synergies from the QuickChek acquisition may not be fully realized or may take longer than expected[104](index=104&type=chunk) [Unresolved Staff Comments](index=28&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) As of December 31, 2022, the company had no unresolved comments from the U.S. Securities and Exchange Commission staff - The Company reported no unresolved comments from the SEC staff as of the end of the fiscal year[141](index=141&type=chunk) [Properties](index=28&type=section&id=Item%202.%20Properties) The company's properties include its headquarters, QuickChek office, and numerous owned and leased retail stores and terminals - The company's principal properties consist of its headquarters, support centers, and its network of owned and leased retail stores and terminals, as described in Item 1 of this report[67](index=67&type=chunk)[142](index=142&type=chunk) [Legal Proceedings](index=28&type=section&id=Item%203.%20Legal%20Proceedings) Murphy USA is involved in ordinary course legal proceedings, including climate change lawsuits, with no material adverse financial impact expected - The company is a defendant in lawsuits filed by the City of Charleston, South Carolina, and the state of Delaware, which allege damages resulting from climate change[144](index=144&type=chunk) - Management believes that the ultimate resolution of all legal proceedings, which have arisen in the ordinary course of business, is not expected to have a material adverse effect on the company's financial results[143](index=143&type=chunk) [Information About our Executive Officers](index=29&type=section&id=Information%20About%20our%20Executive%20Officers) This section provides biographical information for the company's executive officers as of December 31, 2022 - Key executive officers of the company include: - **R. Andrew Clyde:** President and Chief Executive Officer[147](index=147&type=chunk) - **Mindy K. West:** Executive Vice President, Fuels, Chief Financial Officer, and Treasurer[148](index=148&type=chunk) - **Robert J. Chumley:** Senior Vice President, Chief Digital Officer[149](index=149&type=chunk) - **Renee M. Bacon:** Senior Vice President, Sales and Operations and Chief Merchandising Officer[150](index=150&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=31&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on the NYSE under 'MUSA', with active dividends and a significant share repurchase program - The company paid total dividends of **$1.27 per share** during 2022, an increase from **$1.04 per share** in 2021[159](index=159&type=chunk) - In 2022, the company repurchased **3,328,795 common shares** for a total of **$806.4 million**, at an average price of **$242.24 per share**[162](index=162&type=chunk) Issuer Purchases of Equity Securities (Q4 2022) | Period | Total Shares Purchased (Shares) | Average Price Paid Per Share ($/Share) | Approx. Dollar Value Remaining Under Plan ($) | | :--- | :--- | :--- | :--- | | Oct 2022 | 371,671 | $277.44 | $349,999,922 | | Nov 2022 | 100,082 | $290.57 | $320,918,746 | | Dec 2022 | 374,238 | $286.60 | $213,661,734 | | **Q4 Total** | **845,991** | **$283.05** | **$213,661,734** | Cumulative Shareholder Return Performance ($100 Investment on Dec 31, 2017) | Date | Murphy USA Inc. ($) | S&P 500 Index ($) | S&P Retail Select Index ($) | | :--- | :--- | :--- | :--- | | Dec 31, 2017 | $100 | $100 | $100 | | Dec 31, 2018 | $95 | $94 | $91 | | Dec 31, 2019 | $146 | $121 | $102 | | Dec 31, 2020 | $163 | $140 | $142 | | Dec 31, 2021 | $248 | $178 | $202 | | Dec 31, 2022 | $348 | $144 | $136 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2022, Murphy USA's net income significantly increased to $672.9 million, driven by higher fuel margins and volumes [Results of Operations](index=36&type=section&id=Results%20of%20Operations) For fiscal year 2022, net income rose to $672.9 million, driven by higher fuel contribution and improved merchandise performance Consolidated Financial Highlights (2022 vs. 2021) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Total Revenues ($ billion) | $23.4 | $17.4 | | Net Income ($ million) | $672.9 | $396.9 | | Diluted EPS ($) | $28.10 | $14.92 | Total Fuel Contribution Analysis | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Total Fuel Contribution ($ M) | $1,630.0 | $1,144.3 | | Retail Fuel Volume (Million gal) | 4,751.5 | 4,352.2 | | Total Fuel Contribution (cpg) | 34.3 | 26.3 | | Retail Fuel Margin (cpg) | 29.6 | 21.9 | Merchandise Performance Analysis | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Total Merchandise Contribution ($ M) | $767.1 | $701.6 | | Total Merchandise Sales ($ M) | $3,903.2 | $3,677.7 | | Merchandise Unit Margin (%) | 19.7% | 19.1% | Reconciliation of Net Income to Adjusted EBITDA | (Millions of dollars) | 2022 | 2021 | | :--- | :--- | :--- | | Net income | $672.9 | $396.9 | | Income tax expense | $210.9 | $125.0 | | Interest expense, net | $82.3 | $82.3 | | Depreciation and amortization | $220.4 | $212.6 | | **EBITDA** | **$1,186.5** | **$816.8** | | Other adjustments | $4.4 | $11.2 | | **Adjusted EBITDA** | **$1,190.9** | **$828.0** | [Capital Resources and Liquidity](index=42&type=section&id=Capital%20Resources%20and%20Liquidity) The company maintained strong liquidity in 2022 with $994.7 million in operating cash flow, funding share repurchases and property additions - Capital expenditures for 2023 are expected to range from **$375 million to $425 million**, primarily allocated to retail growth (**$285M-$315M**) and maintenance capital (**$50M-$60M**)[246](index=246&type=chunk) Cash Flow Summary (2022 vs. 2021) | (Millions of dollars) | 2022 | 2021 | | :--- | :--- | :--- | | Net cash from Operating Activities | $994.7 | $737.4 | | Net cash used in Investing Activities | $(319.3) | $(914.2) | | Net cash (used in) from Financing Activities | $(871.3) | $269.6 | Long-Term Debt Summary (as of Dec 31, 2022) | Debt Instrument | Amount (Millions) | | :--- | :--- | | 5.625% senior notes due 2027 | $298.4 | | 4.75% senior notes due 2029 | $495.8 | | 3.75% senior notes due 2031 | $494.9 | | Term loan due 2028 | $393.3 | | Capitalized lease obligations & other | $133.6 | | **Total Long-Term Debt** | **$1,816.0** | [Critical Accounting Policies](index=47&type=section&id=Critical%20Accounting%20Policies) The company's critical accounting policies involve significant judgment in areas like goodwill impairment and asset retirement obligations - Goodwill and intangible assets are tested for impairment annually, or more frequently if indicators of impairment exist[247](index=247&type=chunk) - Long-lived assets, such as individual retail stores, are reviewed for impairment whenever events, like consistent negative cash flow over a 24-month period, indicate the carrying amount may not be recoverable[249](index=249&type=chunk) - The company records asset retirement obligations (AROs) for the estimated future cost to remove underground storage tanks, based on historical costs and estimates of future changes[255](index=255&type=chunk)[256](index=256&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from commodity price volatility and interest rate fluctuations, managed through limited derivative use - The company is exposed to commodity price risk from volatility in crude oil and refined product prices, which it manages with limited use of derivative instruments[261](index=261&type=chunk) - Interest rate risk exists due to the floating-rate term loan (**$394 million** balance at year-end 2022) tied to LIBOR, with an interest rate swap hedging a portion[263](index=263&type=chunk)[264](index=264&type=chunk) [Financial Statements and Supplementary Data](index=50&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for 2022, including balance sheets and income statements Consolidated Balance Sheet Data (as of Dec 31) | (Millions of dollars) | 2022 | 2021 | | :--- | :--- | :--- | | Total Current Assets | $726.8 | $767.8 | | Total Assets | $4,123.2 | $4,048.2 | | Total Current Liabilities | $854.2 | $675.3 | | Total Liabilities | $3,482.5 | $3,241.0 | | Total Stockholders' Equity | $640.7 | $807.2 | Consolidated Income Statement Data (Year Ended Dec 31) | (Millions of dollars) | 2022 | 2021 | | :--- | :--- | :--- | | Total Operating Revenues | $23,446.1 | $17,360.5 | | Income from Operations | $968.4 | $604.0 | | Income Before Income Taxes | $883.8 | $521.9 | | Net Income | $672.9 | $396.9 | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=51&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reported no changes or disagreements with its accountants on accounting principles or financial disclosure - There were no disagreements with accountants on accounting and financial disclosure[266](index=266&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2022[266](index=266&type=chunk) - Based on an evaluation against the COSO framework, management concluded that the company's internal control over financial reporting was effective as of December 31, 2022[268](index=268&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=52&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the Proxy Statement - Required information for this item is incorporated by reference from the company's 2023 Proxy Statement[272](index=272&type=chunk) [Executive Compensation](index=52&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive and director compensation is incorporated by reference from the definitive Proxy Statement - Required information for this item is incorporated by reference from the company's 2023 Proxy Statement[274](index=274&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=52&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership and equity compensation plans is incorporated by reference from the Proxy Statement - Required information for this item is incorporated by reference from the company's 2023 Proxy Statement[275](index=275&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=52&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding related party transactions and director independence is incorporated by reference from the Proxy Statement - Required information for this item is incorporated by reference from the company's 2023 Proxy Statement[275](index=275&type=chunk) [Principal Accountant Fees and Services](index=52&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding fees paid to and services provided by the principal independent accountant is incorporated by reference - Required information for this item is incorporated by reference from the company's 2023 Proxy Statement[276](index=276&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=53&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the financial statements, schedules, and exhibits filed as part of the Annual Report on Form 10-K - This section provides an index of all financial statements, schedules, and exhibits included in or incorporated by reference into the Form 10-K filing[278](index=278&type=chunk)[282](index=282&type=chunk) [Form 10-K Summary](index=56&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company indicates that there is no Form 10-K summary provided in this report - No Form 10-K summary is provided[287](index=287&type=chunk)

Murphy USA Inc. (NYSE:MUSA) Q4 2022 Earnings Conference Call February 2, 2023 11:00 AM ET Company Participants Christian Pikul - Vice President, Investor Relations Andrew Clyde - President and CEO Mindy West - Executive Vice President and CFO Donnie Smith - Vice President and Controller Conference Call Participants Bonnie Herzog - Goldman Sachs Anthony Bonadio - Wells Fargo Bobby Griffin - Raymond James Ben Bienvenu - Stephens John Royall - JPMorgan Rob Dickerson - Jefferies Operator Ladies and gentlemen, t ...

Murphy USA Inc. (NYSE:MUSA) Q3 2022 Earnings Conference Call October 27, 2022 11:00 AM ET Company Participants Christian Pikul - Vice President, Investor Relations Andrew Clyde - President and Chief Executive Officer Mindy West - Executive Vice President, Fuels and Chief Financial Officer Conference Call Participants Ben Bienvenu - Stephens Anthony Bonadio - Wells Fargo Robert Dickerson - Jefferies John Royall - JP Morgan Carla Casella - JP Morgan Bobby Griffin - Raymond James Bonnie Herzog - Goldman Sachs ...