Murphy USA (US:MUSA)2025-10-30 20:40Financial Performance - For Q3 2025, the company reported net income of $129.9 million, or $6.76 per diluted share, on revenue of $5.1 billion, compared to net income of $149.2 million, or $7.20 per diluted share, on $5.2 billion of revenue in Q3 2024[158]. - Year-to-date revenues for the nine months ended September 30, 2025, decreased by $0.9 billion, or 5.8%, to $14.6 billion, primarily due to an 8.5% decrease in average retail fuel sales prices[165]. - Marketing segment net income for Q3 2025 decreased to $163.9 million, down from $168.0 million in Q3 2024, a decline of 0.6%[171]. - Total operating revenues for the marketing segment in Q3 2025 were $5,110.0 million, compared to $5,238.4 million in Q3 2024, representing a decrease of 2.4%[172]. - Net income in the Marketing segment for the nine months ended September 30, 2025 decreased by $6.4 million compared to the same period in 2024[184]. - Net cash provided by operating activities was $568.4 million for the nine months ended September 30, 2025, a decrease of $30.5 million, or 5.1%, compared to the same period in 2024[196]. Revenue and Sales - Total fuel contribution in Q3 2025 was 30.7 cents per gallon, down from 32.6 cents per gallon in Q3 2024, with retail fuel margin dollars decreasing by 10.4%[149]. - Total fuel contribution for Q3 2025 was $384.8 million, down from $404.2 million in Q3 2024, a decline of 4.3%[176]. - Total merchandise contribution increased to $241.2 million in Q3 2025, up from $216.8 million in Q3 2024, an increase of 11.8%[177]. - Retail fuel volume for the chain in Q3 2025 was 1,254.3 million gallons, compared to 1,239.3 million gallons in Q3 2024, an increase of 1.2%[176]. - Merchandise sales for Q3 2025 were $1,122.3 million, slightly up from $1,082.4 million in Q3 2024, an increase of 3.7%[177]. - Total merchandise contribution increased by 4.9% year-to-date 2025 compared to the same period of 2024, primarily due to favorable sales mix and higher retail prices[186]. - Total fuel contribution for the nine-month period ended September 30, 2025 was $1.1 billion, a decrease of $15.5 million, or 1.4%, compared to the first nine months of 2024[185]. Expenses and Costs - SG&A expenses for the first nine months of 2025 decreased by $14.9 million, or 8.2%, compared to the same period in 2024, primarily due to lower professional fees and employee-related costs[168]. - Store and other operating expenses increased by $29.1 million, or 3.6%, year-to-date compared to the same period in 2024, primarily due to increases in net new store operating expenses[167]. - The company reported lower SG&A expenses in Q3 2025, contributing to the overall decrease in operating expenses[173]. - Total operating expenses for the marketing segment in Q3 2025 were $4,889.2 million, down from $5,012.2 million in Q3 2024, a decrease of 2.5%[174]. Capital Expenditures and Debt - The company anticipates total capital expenditures for the full year 2025 to range from approximately $450 million to $500 million, depending on new store construction activity[152]. - The company plans to fund its capital program in 2025 primarily using operating cash flow, supplemented by borrowings under its revolving credit facility as necessary[153]. - As of September 30, 2025, total long-term debt was $2,223.0 million, an increase from $1,832.7 million as of December 31, 2024, representing a growth of approximately 21.3%[204]. - The company issued $600 million of senior secured term loans in April 2025, with an outstanding balance of $600 million as of September 30, 2025, compared to $386 million prior to refinancing[211]. - The company spent $132.5 million on capital investments in the three months ended September 30, 2025, compared to $146.9 million in the same period of 2024, a decrease of approximately 9.5%[221]. - The company’s marketing capital spending for company stores was $106.3 million for the three months ended September 30, 2025, down from $111.4 million in 2024[221]. Market Risks and Derivatives - 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[225]. - As of September 30, 2025, the company had 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[226]. - The company makes limited use of derivative instruments for risk management, which is monitored by senior management[225]. - Interest rate swaps are used to hedge a portion of the company's exposure to interest rate movements[227]. - A 10% increase or decrease in interest rates would have an immaterial impact on the company's financial statements as of September 30, 2025[227]. - Changes in the fair value of derivative contracts generally offset changes in the value for an equivalent volume of the underlying products[226].