Murphy USA Inc. (NYSE:MUSA) Q2 2021 Earnings Conference Call July 29, 2021 11:00 AM ET Company Participants Christian Pikul - Vice President, Investor Relations and Financial Planning and Analysis 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 Bobby Griffin - Raymond James John Royall - JP Morgan Ben Bienvenu - Stephens, Inc. Matt Fishbein - Jefferies Operator Good day and ...

[Part I – Financial Information](index=4&type=section&id=Part%20I%20%E2%80%93%20Financial%20Information) [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited consolidated financial statements for Q2 and YTD June 30, 2021, reflecting the QuickChek acquisition's impact [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets surged to nearly **$4.0 billion** by June 30, 2021, primarily due to the QuickChek acquisition Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2021 | Dec 31, 2020 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$3,986.1** | **$2,685.7** | **+48.4%** | | Goodwill | $329.1 | $0.0 | N/A | | Intangible assets, net | $141.2 | $34.6 | +308.1% | | **Total Liabilities** | **$3,228.2** | **$1,901.6** | **+69.8%** | | Long-term debt | $1,794.4 | $951.2 | +88.7% | | **Total Stockholders' Equity** | **$757.9** | **$784.1** | **-3.3%** | - The acquisition of QuickChek resulted in the recognition of **$329.1 million** in goodwill and a significant increase in intangible assets, property, plant, and equipment[10](index=10&type=chunk)[55](index=55&type=chunk) [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Net income decreased in Q2 2021 and YTD, primarily due to lower fuel margins and higher operating expenses Income Statement Summary (in millions, except per share data) | Metric | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenues | $4,456.0 | $2,379.6 | $7,993.1 | $5,564.4 | | Income from Operations | $190.2 | $235.5 | $284.8 | $366.3 | | Net Income | $128.8 | $168.9 | $184.1 | $258.2 | | Diluted EPS | $4.79 | $5.73 | $6.73 | $8.60 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow decreased, while investing activities surged due to the QuickChek acquisition, largely debt-financed Six Months Ended June 30 Cash Flow Summary (in millions) | Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash from operating activities | $330.8 | $381.9 | | Net cash used in investing activities | $(778.3) | $(99.2) | | Net cash from financing activities | $448.9 | $(159.4) | | **Net change in cash** | **$1.4** | **$123.3** | - The primary use of cash in investing activities was the **$641.1 million** payment for the QuickChek acquisition, net of cash acquired[20](index=20&type=chunk) - Financing activities were dominated by **$892.8 million** in debt borrowings, largely to fund the acquisition, alongside **$198.3 million** in treasury stock purchases and **$13.5 million** in dividend payments[20](index=20&type=chunk) [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes explain the QuickChek acquisition, debt, revenue recognition, and the company's single Marketing segment - On January 29, 2021, the company acquired 100% of QuickChek for an all-cash consideration of **$641.9 million**, resulting in **$329.1 million** of goodwill[52](index=52&type=chunk)[55](index=55&type=chunk) - To fund the QuickChek acquisition, the company issued **$500 million** of 3.75% Senior Notes due 2031 and entered into a new credit agreement with a **$400 million** term loan[66](index=66&type=chunk)[70](index=70&type=chunk) - The company operates under a single reportable segment, Marketing, which includes retail fuel and merchandise sales, as well as wholesale operations[135](index=135&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses QuickChek's impact, lower Q2 2021 net income from reduced fuel margins, and 2021 capital expenditures - Net income for Q2 2021 was **$128.8 million**, down from **$168.9 million** in Q2 2020, primarily due to lower all-in fuel contribution and higher operating expenses, partly offset by improved merchandise contribution[154](index=154&type=chunk) - The acquisition of QuickChek on January 29, 2021, is a key strategic move to expand into the Northeast and enhance food and beverage capabilities[140](index=140&type=chunk) Key Operating Metrics (Q2 2021 vs Q2 2020) | Metric | Q2 2021 | Q2 2020 | | :--- | :--- | :--- | | Total Fuel Contribution (cpg) | 28.2 | 38.3 | | Retail Fuel Margin (cpg) | 21.8 | 31.7 | | Total Merchandise Contribution | $184.5M | $118.4M | | Merchandise Unit Margin | 19.2% | 15.4% | - Full-year 2021 capital expenditures are projected to be between **$325 million** and **$375 million**[149](index=149&type=chunk)[224](index=224&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from commodity price volatility and interest rate fluctuations, with some hedging - Primary market risks are commodity price volatility for refined products and interest rate risk on its floating-rate debt[231](index=231&type=chunk)[233](index=233&type=chunk) - The company has a **$400 million** floating-rate term loan and uses an interest rate swap to hedge **$150 million** of this exposure[233](index=233&type=chunk)[234](index=234&type=chunk) [Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed effective disclosure controls and procedures as of June 30, 2021, with no material internal control changes - Management concluded that disclosure controls and procedures were effective as of June 30, 2021[236](index=236&type=chunk) - There were no material changes to internal control over financial reporting during the second quarter of 2021[237](index=237&type=chunk) [Part II – Other Information](index=53&type=section&id=Part%20II%20%E2%80%93%20Other%20Information) [Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings not expected to materially impact its financial condition or operations - As of June 30, 2021, the company was engaged in routine legal proceedings incidental to its business, which are not expected to have a material adverse effect[238](index=238&type=chunk) [Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) No new risk factors were identified beyond those previously disclosed in the Annual Report on Form 10-K - No new risk factors were identified beyond those previously disclosed in the Annual Report on Form 10-K[239](index=239&type=chunk) [Issuer Purchases of Equity Securities](index=53&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2021, Murphy USA repurchased **1,085,876 shares** for **$148.3 million** under its program Share Repurchases for Q2 2021 | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2021 | — | $— | | May 2021 | 571,777 | $138.92 | | June 2021 | 514,099 | $133.97 | | **Q2 Total** | **1,085,876** | **$136.58** | - As of June 30, 2021, approximately **$176.7 million** remained available for repurchase under the current plan, which extends through December 31, 2023[240](index=240&type=chunk) [Other Information](index=54&type=section&id=Item%205.%20Other%20Information) No information was reported under this item - No information was reported under this item[241](index=241&type=chunk) [Exhibits](index=54&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including required certifications from the CEO and CFO - The report includes required certifications from the CEO and CFO under Sections 302 and 906 of the Sarbanes-Oxley Act[246](index=246&type=chunk)

Financial Data and Key Metrics Changes - Total revenue for Q1 2021 was $3.5 billion, up from $3.2 billion in Q1 2020, reflecting the impact of the QuickChek acquisition [20][23] - Net income for Q1 2021 was $55.3 million, down from $89.3 million in Q1 2020, attributed to increased depreciation, interest expenses from QuickChek, and one-time acquisition-related costs [25] - Adjusted EBITDA for Q1 2021 was $154.8 million, compared to $170.7 million in the same period in 2020 [24] Business Line Data and Key Metrics Changes - Fuel margins reached $0.225 per gallon, consistent with Q1 2020, despite rising prices [9] - Same-store sales in the merchandise segment showed strength, particularly in tobacco, which grew sales and margin dollars by about 2% [12] - Non-tobacco merchandise sales grew nearly 10%, contributing to an increase in overall margin contribution dollars by approximately $5 million in Q1 [12] Market Data and Key Metrics Changes - Fuel volumes were down 10% year-over-year for Murphy USA, but April volumes improved to within 5% of 2019 levels, indicating a recovery in demand [11] - Average retail gasoline prices per gallon during Q1 2021 were $2.37, compared to $2.14 in 2020 [23] Company Strategy and Development Direction - The company is focused on leveraging the QuickChek acquisition to achieve $28 million in synergies over three years across fuels, merchandise, and operational expenses [8] - Management emphasized the importance of integrating QuickChek's technological advancements, such as computer-assisted ordering, to enhance customer-facing technologies at Murphy stores [18] - The company aims to maintain its competitive edge by optimizing supply chain processes and enhancing store-level execution in food and beverage categories [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong multiyear EBITDA growth, supported by improved fuel volumes and retail margins in Q2 2021 [28] - The company noted that structural changes in the industry are favoring its high-volume model, which is expected to differentiate its performance from less advantaged competitors [10] - Management acknowledged challenges related to rising fuel prices and labor availability but remains optimistic about sustaining market share gains [32][51] Other Important Information - The company closed the QuickChek acquisition on January 29, 2021, funded by $500 million in senior notes and a $400 million term loan, increasing total debt to approximately $1.8 billion [20][21] - Capital expenditures for Q1 2021 were approximately $56 million, primarily allocated to new store construction [26] Q&A Session Summary Question: Insights on merchandise business and market share retention - Management indicated that initiatives in promotional activity and new product offerings are expected to sustain or grow market share despite challenging comparisons from last year [32] Question: Impact of FDA's menthol cigarette proposal - Management noted that while the proposal could lead to a reduction in tobacco consumption, the company is well-positioned to adapt through its focus on noncombustible products [38] Question: Long-term fuel volume growth outlook - Management expects fuel demand to stabilize around a growth rate of plus or minus 0.5% per year, influenced by factors such as vehicle miles traveled and population growth [44] Question: Construction costs and supply chain impacts - Management has not yet seen significant impacts from construction cost inflation due to established contracts for modular store builds [47] Question: Potential wage increases and their impact - Management highlighted that a national minimum wage increase could pose a $30 million headwind, but the company is prepared to leverage technology to mitigate labor costs [54] Question: Product resets and their impact on margins - Management confirmed that product resets are occurring across all categories, leading to improved sales and margin performance [59]

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 ☐ 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 (State or other jurisdiction of incorporation or ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark one) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 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 (Sta ...

Financial Data and Key Metrics Changes - Revenue for Q4 2020 was $2.9 billion, down from $3.5 billion in Q4 2019, and full-year revenue was $11.3 billion compared to $14 billion in 2019, primarily due to lower retail gasoline prices and lower gallons sold due to COVID-19 [29][30] - Adjusted EBITDA for Q4 2020 was $136.3 million, up from $112.4 million in Q4 2019, and for the full year, it was $722.7 million compared to $422.6 million in 2019, driven by higher average retail margins and merchandise contributions [30][31] - Net income for 2020 was $386.1 million, significantly higher than $154.8 million in 2019, with an effective tax rate of 24.4% for Q4 and 24.2% for the full year [32] Business Line Data and Key Metrics Changes - Fuel volume in Q4 showed a 6% decrease year-over-year, with January volumes down about 8% attributed to rising prices [17][18] - Same-store sales increased nearly 10%, with same-store merchandise contribution up nearly 11%, driven by both tobacco and non-tobacco categories [20][21] - The company plans to open up to 50 new 2,800-square-foot stores in 2021, expecting continued outperformance from these larger formats [22] Market Data and Key Metrics Changes - Average retail gasoline prices per gallon were $1.87 in Q4 2020 compared to $2.31 in Q4 2019, and for the full year, prices averaged $1.91 versus $2.33 in 2019 [29] - The company expects higher than normal retail margins to persist in 2021, benefiting from market dynamics [19] Company Strategy and Development Direction - The acquisition of QuickChek is seen as a strategic move to enhance capabilities and drive future growth, with a focus on integrating best practices rather than rapid cost synergies [9][12] - The company aims to maintain capital discipline and shareholder-friendly practices, having paid its first dividend in December 2020 and setting a record for share repurchases [15] - The strategic focus includes enhancing food and beverage offerings and leveraging QuickChek's strengths to improve overall business performance [12][55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for growth in 2021, citing strong customer insights and competitive dynamics as key drivers [10][41] - The company anticipates that fuel margins will remain elevated, benefiting from the current market structure [40] - Management highlighted the importance of maintaining a conservative balance sheet while pursuing growth opportunities [76] Other Important Information - Total debt as of December 31, 2020, was over $1 billion, with a leverage ratio of approximately 1.4x [33] - Capital expenditures for 2020 were $227 million, with plans for increased spending in 2021 to support growth initiatives [36][37] Q&A Session Summary Question: Guidance on $550 million adjusted EBITDA - Management indicated that the $550 million is a starting point for growth, with expectations for continued improvement and synergies from the QuickChek acquisition [60][65] Question: Capital allocation priorities - Management emphasized a focus on growth opportunities while balancing debt pay-down and share repurchases, with a preference for growing earnings to reduce leverage [67][76] Question: QuickChek acquisition milestones - Key milestones include sharing best practices and leveraging QuickChek's food and beverage expertise to enhance Murphy USA's offerings [84][86] Question: Tobacco category performance - Management noted that customer behaviors have shifted during COVID, and they expect to maintain and grow market share in the tobacco category [96] Question: Fuel volumes and outperformance - Management attributed strong fuel volume performance to improved pricing strategies and location advantages [101][102] Question: Non-tobacco merchandise sales outlook - Management expressed optimism about non-tobacco sales, particularly in categories like packaged beverages and grab-and-go food items [110][111] Question: Electric vehicle market preparation - Management acknowledged the long-term impact of electric vehicles but emphasized that current customer demographics may not shift significantly in the near term [114][119]

Call Start: 11:00 January 1, 0000 11:54 AM ET Murphy USA Inc. (NYSE:MUSA) Q3 2020 Results Conference Call October 29, 2020 11:00 ET Company Participants Christian Pikul - Vice President, Investor Relations, Financial Planning & Analysis Andrew Clyde - President & Chief Executive Officer Mindy West - Executive Vice President & Chief Financial Officer Conference Call Participants Ben Bienvenu - Stephens Inc. Bobby Griffin - Raymond James John Royall - JP Morgan Carla Casella - JP Morgan Operator Ladies and ge ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) 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) (870) 875-7600 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 1 ...

Murphy USA Inc.1 Goldman 27th Annual Global Retailing Conference September 2020 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 crude oil and gasoline ...

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, 2020 200 Peach Street El Dorado, Arkansas 71730-5836 (Address of principal executive offices) (Zip Code) 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 0 ...