Murphy USA (US:MUSA)2025-07-31 20:40Part I – Financial Information Item 1. Financial Statements (Unaudited) The unaudited statements detail the company's financial position, performance, and cash flows for the three and six months ended June 30, 2025 Consolidated Financial Statements The statements show stable performance with total assets growing to $4.62 billion and Q2 2025 net income at $145.6 million Consolidated Balance Sheets | Financial Metric | June 30, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $4,622.2 million | $4,541.6 million | | Total Liabilities | $3,976.1 million | $3,701.5 million | | Total Stockholders' Equity | $646.1 million | $840.1 million | Consolidated Statements of Income | Metric (in millions, except EPS) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenues | $5,005.0 | $5,451.7 | $9,530.4 | $10,295.4 | | Net Income | $145.6 | $144.8 | $198.8 | $210.8 | | Diluted EPS | $7.36 | $6.92 | $9.95 | $10.02 | Consolidated Statements of Cash Flows | Cash Flow Activity (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $383.6 | $396.8 | | Net cash used in investing activities | $(204.3) | $(189.4) | | Net cash used in financing activities | $(172.2) | $(245.4) | Notes to Consolidated Financial Statements Notes detail business operations, revenue sources, debt structure, legal contingencies, and segment reporting - The company markets refined products through a network of 1,766 retail stores under the Murphy USA, Murphy Express, and QuickChek brands as of June 30, 202523 Revenue by Source | Revenue Source (in millions) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Petroleum product sales | $3,851.4 | $4,340.5 | $7,341.2 | $8,152.2 | | Merchandise sales | $1,092.4 | $1,080.4 | $2,091.8 | $2,081.1 | | Other operating revenues (incl. RINs) | $61.2 | $30.8 | $97.4 | $62.1 | - Total long-term debt, net of current maturities, increased to $2,066.7 million at June 30, 2025, from $1,832.7 million at December 31, 2024, primarily due to a refinancing that included a new term loan56 - Under a share repurchase authorization of up to $1.5 billion (expiring Dec 31, 2028), approximately $578.0 million remained available as of June 30, 202593 - The company is a defendant in lawsuits filed by the City of Charleston, South Carolina, and the State of Delaware, which allege damages as a result of climate change117 - The company's operations are managed as a single reportable segment, "Marketing," which includes retail motor fuel and convenience merchandise sales, as well as wholesale operations130 Management's Discussion and Analysis (MD&A) Management analyzes financial performance, highlighting volatile fuel margins, capital allocation, and liquidity Executive Overview and Business Trends The business is heavily influenced by volatile fuel margins, with a 2025 capital plan of $450-$500 million - Total fuel contribution (retail fuel margin plus product supply & wholesale results including RINs) was 32.0 cents per gallon (cpg) in Q2 2025, compared to 31.7 cpg in Q2 2024150 - The company anticipates total capital expenditures for the full year 2025 to range from approximately $450 million to $500 million153 - The ongoing effective tax rate for the remainder of 2025 is estimated to be between 23% and 25%155 Results of Operations Q2 2025 revenues fell 8.2% to $5.0 billion, though net income rose slightly due to higher fuel contributions Key Performance Indicators | Metric (in millions) | Q2 2025 | Q2 2024 | Change | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income | $145.6 | $144.8 | +0.6% | $198.8 | $210.8 | -5.7% | | Diluted EPS | $7.36 | $6.92 | +6.4% | $9.95 | $10.02 | -0.7% | - Q2 2025 revenues decreased by $0.5 billion (8.2%) compared to Q2 2024, primarily due to a 12.2% reduction in the average retail fuel sales price160 - Selling, general and administrative (SG&A) expenses for Q2 2025 decreased by $8.2 million (13.9%) versus Q2 2024, mainly due to lower professional fees and incentive costs163 Contribution Analysis | Key Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Fuel Contribution | $393.0M | $390.3M | $680.3M | $676.4M | | Retail Fuel Volume (Million gal) | 1,229.3 | 1,231.6 | 2,360.5 | 2,384.7 | | Total Merchandise Contribution | $218.7M | $216.5M | $414.6M | $408.1M | Capital Resources and Liquidity The company managed liquidity through a recent refinancing and continued share repurchases of $363.8 million in H1 2025 - Net cash provided by operating activities decreased by $13.2 million (3.3%) to $383.6 million for the six months ended June 30, 2025, compared to the same period in 2024197 - During the six months ended June 30, 2025, the company repurchased 791,827 common shares for approximately $363.8 million200202 - A refinancing effective April 7, 2025, provided a new $600 million senior secured term loan due 2032 and a $750 million revolving credit facility209 Capital Spending Breakdown | Capital Spending (in millions) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Company stores | $140.3 | $156.5 | | Maintenance capital | $28.3 | $32.4 | | Total | $176.6 | $205.2 | Quantitative and Qualitative Disclosures About Market Risk The company faces market risks from commodity price volatility and interest rate fluctuations on its debt - The company has market risk exposure related to the volatility in the price of refined products, which affects revenues and costs224 - Interest rate risk exists due to a $600 million floating-rate term loan and $88.0 million of outstanding borrowings under the revolving credit facility, both tied to variable rates like SOFR226 Controls and Procedures Management concluded that disclosure controls and internal controls over financial reporting were effective - Management concluded that disclosure controls and procedures were effective as of June 30, 2025228 - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls229 Part II – Other Information Legal Proceedings The company is involved in routine legal matters, including climate change lawsuits not expected to be material - The company is a defendant in lawsuits filed by the City of Charleston, SC, and the State of Delaware alleging damages from climate change231 Risk Factors No material changes or additions to risk factors were identified since the last annual report - No additional risk factors were identified beyond those disclosed in the most recent Form 10-K232 Issuer Purchases of Equity Securities The company repurchased 470,708 shares for approximately $209.9 million during the second quarter of 2025 Quarterly Share Repurchase Activity | Period (2025) | Total Shares Purchased | Average Price Paid | Value Remaining in Plan | | :--- | :--- | :--- | :--- | | April | 93,952 | $488.67 | $741.9M | | May | 274,583 | $442.99 | $620.3M | | June | 102,173 | $413.99 | $578.0M | | Q2 Total | 470,708 | $445.81 | $578.0M |