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 ...

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, 2023 (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 (Registrant's telephone number, including area code) Securities registered ...

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)