Murphy USA (MUSA) is set to release first-quarter results on May 1. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $4.09 per share on revenues of $4.9 billion.Let’s delve into the factors that might have influenced the downstream operator’s results in the March quarter. But it’s worth taking a look at MUSA’s previous-quarter performance first.Highlights of Q4 Earnings & Surprise HistoryIn the last reported quarter, the El Dorado, AR-based motor fuel retailer beat the cons ...

The most recent trading session ended with Murphy USA (MUSA) standing at $421.11, reflecting a +1.06% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily gain of 0.02%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq gained 0.1%.Coming into today, shares of the gasoline station operator had gained 0.58% in the past month. In that same time, the Oils-Energy sector gained 4.26%, while the S&P 500 lost 3.01%.Investors will be eagerly watching for ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

Murphy USA (MUSA) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Shares of this gasoline station operator have returned +0.6% over the past month versus the Zacks S&P 500 composite's -3% change. The Zacks Oil and Gas - Refining and Marketing industry, to which Murphy USA belongs, has gained 1.6% over this period. Now the key question is: Where could the stock be headed in the n ...

Murphy USA (MUSA) ended the recent trading session at $412.85, demonstrating a -1.96% swing from the preceding day's closing price. This change lagged the S&P 500's 0.22% loss on the day. Elsewhere, the Dow saw an upswing of 0.06%, while the tech-heavy Nasdaq depreciated by 0.52%.Prior to today's trading, shares of the gasoline station operator had gained 1.7% over the past month. This has lagged the Oils-Energy sector's gain of 3.38% and outpaced the S&P 500's loss of 1.66% in that time.The investment comm ...

Retail Operations - As of December 31, 2023, the company operates 1,733 retail stores, with a significant number located near Walmart, enhancing customer traffic and collaboration on fuel discount programs [16] - As of December 31, 2023, the total number of branded retail outlets increased to 1,733 from 1,712 in 2022, with Murphy USA and Murphy Express outlets at 1,577 and QuickChek at 156 [41] - The company sold approximately 4.8 billion gallons of motor fuel through its retail outlets in 2023, indicating strong sales performance [32] - The retail gasoline industry is highly competitive, with significant competition from non-traditional retailers such as supermarkets and discount clubs [44] Financial Performance - In 2023, the company repurchased 1,026,300 common shares for $333.2 million, averaging $324.62 per share, with $1.4 billion remaining under its 2023 share repurchase authorization [22] - The quarterly dividend was raised four times in 2023 from $0.35 to $0.41 per share, resulting in an annualized dividend of $1.64 per share as of Q4 2023 [22] - The total fuel contribution per gallon decreased to 31.4 cents from 34.3 cents in 2022, while the retail fuel margin per gallon decreased to 27.6 cents from 29.6 cents [41] - Merchandise sales revenue per store per month increased to $199.1 thousand in 2023 from $193.5 thousand in 2022, with a merchandise margin of 19.7% [41] Operational Efficiency - The company operates a low-cost retail model, with 75% of its stores located on company-owned property, minimizing rent expenses and overhead costs [19] - The company has improved its cash fuel breakeven requirement by more than 3 cents per gallon since its spin-off in 2013, demonstrating operational efficiency [19] - The company utilizes a standard hardware and software platform for point-of-sale systems across its stores, enhancing operational efficiency [48] Growth and Expansion - The company plans to build at least 30 to 35 new NTI locations and 35 raze-and-rebuild stores in 2024, targeting high-return locations [25] - The company aims to diversify its merchandise mix and enhance food and beverage capabilities, leveraging partnerships to boost revenue and margins [26] Employee Engagement and Safety - The company employs approximately 15,600 employees as of December 31, 2023, emphasizing its commitment to employee engagement and service quality [23] - Murphy USA is committed to employee safety, emphasizing a strong safety culture and rapid response programs for safety events [69] - Murphy USA has consolidated several benefit programs with QuickChek, including medical, dental, and retirement plans, to enhance employee benefits [68] - The company is focused on increasing diversity through talent management strategies, including annual succession planning and performance reviews [66] - The company has established partnerships with HBCUs to enhance talent development and diversity initiatives [69] Regulatory Environment - The company is subject to stringent environmental regulations, which may increase compliance costs and impact overall business operations [56] - Murphy USA's operations are subject to various regulatory requirements, including those related to the sale of alcoholic beverages and tobacco products [60] - The company adheres to federal and state regulations regarding wage rates and labor costs, which could impact financial performance [61] Financial Structure and Risk Management - The company maintains a conservative financial structure, providing resilience against volatile fuel price movements and supporting a disciplined capital expenditure program [21] - Murphy USA has short-term commodity derivative contracts in place to hedge the purchase price of refined products, with a 10% change in benchmark prices being immaterial to the company [265] - The company has a floating rate term loan balance of $390.0 million as of December 31, 2023, which is tied to SOFR interest rates [266] Environmental Compliance - The company plans to allocate approximately $7.1 million in capital expenditures for environmental compliance in 2024 [52] Market Conditions - Market conditions in the oil and gas industry are cyclical, influenced by global events and regulatory changes, impacting crude oil prices and consumer demand [45] - Consumer demand for products may be adversely affected by stricter fuel economy standards and greenhouse gas emission regulations [54]

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 ...