Core Points - Murphy USA Inc. is celebrating the five-year anniversary of its partnership with Boys & Girls Clubs of America through the 'Great Futures Fueled Here' campaign, which has raised over $11 million since its inception in 2020 [1][3][4] - The 2025 customer round-up campaign will run from March 5 to April 30, 2025, across 27 states, allowing customers to round up their purchases or donate directly to support local youth [2][4] - The partnership has significantly impacted young people's lives, with initiatives like the Back-to-School Prep-Rally in 2024, focusing on goal-setting and STEM activities [3][4] Company Overview - Murphy USA operates more than 1,750 stores primarily in the Southwest, Southeast, Midwest, and Northeast United States, serving approximately two million customers daily [6] - The company ranks 214 among Fortune 500 companies and employs around 17,200 people [6]

Retail Operations - The company sold approximately 4.8 billion gallons of motor fuel through its retail outlets in 2024[33]. - As of December 31, 2024, the company operated a total of 1,757 retail stores, with 368 located in Texas and 136 in New Jersey[34]. - As of December 31, 2024, the total number of branded retail outlets increased to 1,757 from 1,733 in 2023, with Murphy USA and Murphy Express outlets at 1,601[41]. - The company operates with a low-cost retail model, with 75% of its stores located on company-owned property, minimizing rent expenses[20]. - The company utilizes a standard POS system across all stores, enhancing operational efficiency and supporting third-party delivery services[48][50]. Financial Performance - The company repurchased approximately $446.6 million worth of common shares in 2024, with a total of $3.5 billion repurchased over the past eleven years[23]. - The quarterly dividend was raised four times in 2024, increasing from $0.41 per share in Q4 2023 to $0.48 per share, resulting in an annualized dividend of $1.92 per share[23]. - Total fuel contribution per gallon decreased to 30.5 cents from 31.4 cents in 2023, while retail fuel margin per gallon increased slightly to 28.1 cents from 27.6 cents[41]. - Merchandise sales revenue per store per month rose to $204.3 thousand in 2024, up from $199.1 thousand in 2023, with merchandise margin at 19.8%[41]. - Murphy USA's floating rate term loan amounts to $386.0 million, with an additional $56.0 million outstanding on its revolving credit facility as of December 31, 2024[266]. Growth and Expansion - The company plans to build up to 50 new NTI locations and 30 raze-and-rebuild stores in 2025, targeting at least 50 NTI and 30 raze-and-rebuilds annually in future periods[26]. - The company aims to enhance its merchandise mix by developing higher-margin non-nicotine sales and expanding food and beverage capabilities[27]. - The company expects to maintain a disciplined capital expenditure program focused on organic growth, supported by a strong cash position and credit availability[22]. Employee and Human Capital - The company has approximately 17,200 employees as of December 31, 2024, contributing to its sustainable business model and organic growth opportunities[24]. - As of December 31, 2024, Murphy USA employed approximately 17,200 individuals, including 5,900 full-time and 11,300 part-time employees[63]. - The company has consolidated virtually all QuickChek benefit programs with its own, ensuring competitive benefit packages for all eligible employees starting in 2025[68]. - The company is committed to employee development through various initiatives, including mentorship programs and tuition reimbursement[69]. - Murphy USA's human capital management is driven by core principles of Integrity, Respect, Citizenship, and Spirit[65]. Market and Regulatory Environment - The retail gasoline industry is highly competitive, with significant competition from non-traditional retailers, impacting market share and pricing strategies[42][44]. - Consumer demand for motor fuel typically increases during the summer driving season, affecting revenues and sales volumes, which are generally higher in the second and third quarters[46]. - The company faces regulatory challenges related to environmental laws, which may increase operational costs and compliance requirements[52][58]. - The company is subject to stringent fuel economy standards and GHG emission regulations, which could adversely impact demand for its products[54][56]. - The company actively monitors changes in labor laws to ensure compliance and manage potential increases in labor costs[62]. Safety and Risk Management - The company emphasizes a strong safety culture, focusing on employee roles in identifying and mitigating safety risks[69]. - The company utilizes limited derivative instruments to manage commodity price risks, with a 10% change in benchmark prices having an immaterial impact on financials[265]. - Interest rate fluctuations tied to SOFR can affect the company's interest expenses, but a 10% change would also have an immaterial impact on financial statements[266].

Company Performance - Murphy USA Inc. reported fourth-quarter 2024 earnings per share of $6.96, exceeding the Zacks Consensus Estimate of $6.43, primarily driven by strong merchandise sales [1] - The company's operating revenues were $4.7 billion, a decrease of 7.1% year over year, missing the consensus mark by $169 million [2] - Revenues from petroleum product sales were $3.6 billion, down 9.6% from the fourth quarter of 2023 and below the estimate of $4.1 billion [2] Fuel Contribution - Total fuel contribution fell 1% year over year to $389.1 million, with a retail fuel margin of 32.5 cents per gallon, unchanged from the previous year [3] - Retail fuel contribution decreased 8% year over year to $345.8 million, with margins narrowing to 28.9 cents per gallon from 31.1 cents in the corresponding period of 2023 [4] - Retail gallons declined 1% year over year to 1,196.8 million, missing the estimate of 1,210 million [4] Merchandise Sales - Contribution from merchandise increased 5.6% to $208.8 million, supported by higher sales and an increase in unit margins from 19.4% to 19.9% [5] - On a same-store sales (SSS) basis, total merchandise contribution rose 2.4% year over year, primarily due to a 4.7% increase in nicotine margins [5] Balance Sheet - As of December 31, Murphy USA had cash and cash equivalents of $47 million and long-term debt of $1.8 billion, with a debt-to-capitalization ratio of 68.6% [7] - The company opened 22 new retail locations and closed five, bringing the total store count to 1,757 [7] - During the quarter, Murphy USA repurchased shares worth $126.2 million [7]

Financial Data and Key Metrics Changes - The company reported over $1 billion in EBITDA for 2024, indicating sustainable earnings potential [7] - Retail margins improved by 50 basis points to $0.281 per gallon despite challenging market conditions [11] - Operating expenses per store month increased by 5.2% in 2024, driven by new larger stores [24][25] Business Line Data and Key Metrics Changes - Merchandise contribution dollars reached $834 million in 2024, up 3.8% from 2023, with a notable increase in the fourth quarter [22] - QuickCheck Markets faced pressure from food inflation and competition, impacting their performance [9][23] - The Murphy branded network saw per store merchandise sales grow by 3.5% and margin dollars by 5.9% for the full year [11] Market Data and Key Metrics Changes - The company sold approximately 4 billion gallons of fuel in 2014, growing to nearly 5 billion gallons by 2024, representing a 21% increase [20] - Average fuel volumes per store month in 2024 were 240.6 thousand gallons, at the low end of guidance [16] - The company expects to sell just over 5 billion gallons of fuel in 2025, a 4.5% increase from 2024 [19] Company Strategy and Development Direction - The company plans to accelerate its new store program, targeting up to 50 new stores in 2025 [15] - A balanced capital allocation strategy focusing on store growth and share repurchase has been emphasized [31][32] - The company aims to enhance store performance through initiatives like fuel dispenser health improvements [98] Management's Comments on Operating Environment and Future Outlook - Management acknowledged 2024 as a disappointing year due to various challenges, including rising prices and severe weather [8][9] - The company remains optimistic about long-term demand stability and margin growth potential [12] - Management expects continued pressure on QuickCheck Markets but anticipates strong performance in core merchandise categories [23][24] Other Important Information - Total capital spending in 2024 was over $500 million, with a similar level expected for 2025 [29][30] - The company repurchased approximately 938 thousand shares in 2024, reflecting a commitment to shareholder value [31][32] Q&A Session Summary Question: What drove the non-nicotine category to flip positive in the quarter? - Strong performance in Murphy stores with double-digit growth in several categories attributed to digital transformation initiatives [44] Question: Can you walk us through the implied non-nicotine gross margins decline despite better sales? - The gap between sales growth and margin growth is primarily due to how lotto and lottery are reported [48] Question: What are your thoughts on the buyback versus balance sheet leverage? - The company maintains a 50/50 balanced capital allocation approach and can leverage up as earnings power grows [56] Question: Can you discuss the CapEx guidance for 2025? - CapEx for 2025 is expected to be around $500 million, with a shift from raise and rebuilds to new store openings [62] Question: What discussions are you having with vendors regarding promotional support in 2025? - The company values high volumes per store, which positions it well for discussions with vendors [68] Question: What are your expectations for the performance of new stores? - New stores have shown high performance metrics, and the company is focused on making up for missed expectations in future years [86]

Core Insights - Murphy USA reported a revenue of $4.71 billion for the quarter ended December 2024, reflecting a decrease of 7.1% year-over-year and falling short of the Zacks Consensus Estimate of $4.88 billion, resulting in a surprise of -3.45% [1] - The company's EPS was $6.96, slightly down from $7.00 in the same quarter last year, but exceeded the consensus EPS estimate of $6.43 by 8.24% [1] Financial Performance Metrics - Total fuel contribution was 32.5 cents per gallon, surpassing the three-analyst average estimate of 32.19 cents [4] - Retail fuel volume for the chain was reported at 1,196.8 million gallons, below the average estimate of 1,228.39 million gallons [4] - Retail fuel margin was 28.9 cents per gallon, lower than the three-analyst average estimate of 30.56 cents [4] - Operating revenues from petroleum product sales were $3.62 billion, down 9.6% year-over-year and below the average estimate of $4.03 billion [4] - Merchandise sales generated $1.05 billion, representing a year-over-year increase of 3.2%, but also below the average estimate of $1.08 billion [4] - Other operating revenues were reported at $40.90 million, a decrease of 17.5% year-over-year, compared to the average estimate of $42.10 million [4] Stock Performance - Murphy USA's shares have returned +3.5% over the past month, outperforming the Zacks S&P 500 composite's +1.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

分组1 - Murphy USA reported quarterly earnings of $6.96 per share, exceeding the Zacks Consensus Estimate of $6.43 per share, but down from $7 per share a year ago, representing an earnings surprise of 8.24% [1] - The company posted revenues of $4.71 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 3.45% and down from $5.07 billion year-over-year [2] - Over the last four quarters, Murphy USA has surpassed consensus EPS estimates three times but has not beaten consensus revenue estimates [2] 分组2 - The stock's immediate price movement will depend on management's commentary on the earnings call and the sustainability of earnings expectations [3][4] - Murphy USA shares have increased by approximately 1.7% since the beginning of the year, compared to a 2.7% gain for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $4.94 on revenues of $5.1 billion, and for the current fiscal year, it is $26.47 on revenues of $21.51 billion [7] 分组3 - The Zacks Industry Rank for Retail - Convenience Stores is currently in the top 8% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for Murphy USA is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6]

Financial Performance - Net income for Q4 2024 was $142.5 million, or $6.96 per diluted share, compared to $150.0 million, or $7.00 per diluted share in Q4 2023[4] - For the full year 2024, net income was $502.5 million, or $24.11 per diluted share, down from $556.8 million, or $25.49 per diluted share in 2023[4] - Net income for Q4 2024 was $162.9 million, compared to $166.1 million in Q4 2023, reflecting a decline of 1.9%[28] - Net income for Q4 2024 was $142.5 million, a decrease of 5% from $150.0 million in Q4 2023[36] Revenue and Sales - Total operating revenues for Q4 2024 were $4.71 billion, compared to $5.07 billion in Q4 2023, reflecting a decrease in petroleum product sales[26] - Total operating revenues for Q4 2024 were $4,710.0 million, a decrease of 7.1% from $5,068.6 million in Q4 2023[28] - Total retail gallons decreased by 1.0% in Q4 2024, with same store sales (SSS) volumes declining by 2.8% compared to Q4 2023[4] - Same store sales for merchandise increased by 1.5% in Q4 2024 compared to the prior year, while nicotine sales rose by 1.6%[29] Expenses and Costs - Total store and other operating expenses increased by $12.3 million in Q4 2024 compared to Q4 2023, mainly due to higher employee-related expenses[11] - Merchandise cost of goods sold for Q4 2024 was $842.5 million, slightly up from $820.8 million in Q4 2023[28] - Depreciation and amortization expenses for Q4 2024 were $67.2 million, up from $57.0 million in Q4 2023[39] - The company incurred impairment of properties amounting to $8.2 million in Q4 2024, with no such charges in Q4 2023[39] Cash Flow and Investments - Total cash provided by operating activities for the twelve months ended December 31, 2024, was $847.6 million, compared to $784.0 million in 2023, reflecting an increase of 8%[36] - The company reported a net cash outflow from investing activities of $445.8 million for the twelve months ended December 31, 2024, compared to $323.6 million in 2023[36] - The net cash required by financing activities for the twelve months ended December 31, 2024, was $472.6 million, compared to $403.1 million in 2023[36] Shareholder Returns - The quarterly cash dividend paid on December 2, 2024, was $0.48 per share, representing a 6.7% increase from the previous quarter, totaling $9.7 million in cash payments[17] - The company repurchased approximately 239.7 thousand shares for $126.2 million at an average price of $526.61 per share in Q4 2024[4] - The company purchased treasury stock amounting to $128.0 million in Q4 2024, compared to $160.5 million in Q4 2023[36] Growth and Expansion - The company opened 32 new-to-industry (NTI) stores and completed 47 raze and rebuilds in 2024, with a focus on long-term growth opportunities[3] - For 2024, actual results included 32 new stores opened, exceeding the guidance range of 30-35, and 47 raze-and-rebuilds, above the guidance of more than 40[18] - The company expects 2025 guidance to include up to 50 new stores and up to 30 raze-and-rebuilds, indicating a commitment to higher growth levels[18] Future Projections - The company anticipates net income for 2025 to be between $474 million and $551 million, translating to expected Adjusted EBITDA between $1 billion and $1.12 billion[19] - The effective tax rate for 2025 is expected to be in the range of 23% to 25%[22] - Merchandise contribution for 2024 was $834 million, within the guidance range of $830 to $840 million, with expectations for 2025 to be between $855 million and $875 million[18] - Capital expenditures for 2024 were $503 million, within the guidance range of $500 to $525 million, with a projected range of $450 to $500 million for 2025[18] Assets and Liabilities - Total current assets decreased to $748.1 million in 2024 from $826.5 million in 2023, a decline of 9.5%[34] - Total assets increased to $4,541.6 million in 2024, up from $4,340.1 million in 2023, representing a growth of 4.6%[34] - Total liabilities rose to $3,701.5 million in 2024, compared to $3,511.2 million in 2023, an increase of 5.4%[34] - The store count at the end of the period remained stable at 1,757 stores, unchanged from the previous year[28] Margins - Merchandise contribution dollars for Q4 2024 increased by 5.6% to $208.8 million, with average unit margins of 19.9%[10] - Total fuel contribution dollars for Q4 2024 decreased by 1.0% to $389.1 million, primarily due to lower retail volumes sold[7] - Retail fuel margins for the full year 2024 were 28.1 cpg, a 1.8% increase compared to the prior year[8] - The company reported a merchandise margin of 2.4% for Q4 2024, an improvement from 2.7% in the same quarter last year[29]

Core Viewpoint - Murphy USA (MUSA) is expected to report fourth-quarter results on February 5, with earnings estimated at $6.43 per share and revenues at $5 billion, indicating a year-over-year decline in both metrics [1][4]. Financial Performance - In the previous quarter, MUSA reported earnings per share of $7.20, surpassing the Zacks Consensus Estimate of $6.64, although revenues of $5.2 billion fell short by 6.5% due to weak petroleum product sales [3]. - MUSA has beaten the Zacks Consensus Estimate for earnings in three of the last four quarters, with a recent upward revision of 2 cents (0.3%) for the upcoming quarter's earnings estimate [4]. Revenue and Sales Projections - The total fuel contribution for MUSA is projected to increase by 1.8% year over year to $400.1 million, driven by stronger retail profits [5]. - Petroleum product sales are expected to reach $4.1 billion, reflecting a 3.5% increase from the prior year's $4 billion, while merchandise sales are anticipated to grow to $1.1 billion from $1 billion in the same quarter last year [6]. Cost and Margin Considerations - The company's petroleum product costs are expected to rise by 3.8% year over year to $3.8 billion, which may impact the bottom line negatively [8]. - Fuel margins are projected to improve slightly to 33.1 cents per gallon from 32.5 cents in the fourth quarter of 2023 [5]. Earnings Expectations - The Zacks model indicates uncertainty regarding MUSA's ability to beat earnings estimates, with an Earnings ESP of -1.35% [10]. - MUSA currently holds a Zacks Rank of 2 (Buy), suggesting a favorable outlook compared to other firms in the energy sector [11].

The market expects Murphy USA (MUSA) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released ...

One company that I have been generally bullish about for the last couple of years now is none other than gas station owner and operator Murphy USA (NYSE: MUSA ). Recently, my call on the companyCrude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get to use a 50+ stock model account, in-depth cash flow analyses of E&P firms, and live ch ...