Murphy USA Inc. 1 Murphy USA Investor Deck Raymond James Institutional Investor Conference March 2026 Cautionary statement This presentation contains forward-looking statements. These statements, which express management's current views concerning future events or results, are subject to inherent risks and uncertainties. Factors that could cause actual results to differ materially from those expressed or implied in our forward-looking statements include, but are not limited to, the volatility and level of c ...

Core Insights - Massimo Group reported significant financial improvements in Q3 2025, transitioning from a net loss in Q1 to net income in Q3, driven by operational efficiency and strategic pricing [3][5]. Financial Performance - Revenue for Q3 2025 was $16.99 million, a decrease from $25.60 million in Q3 2024, attributed to a refined pricing strategy and temporary sales volume adjustments [4][6]. - Gross profit increased to $7.13 million in Q3 2025 from $6.95 million in Q3 2024, with a gross margin of 42%, up from 27% in the prior year [4][6]. - Total operating expenses were reduced by 20% year-over-year to $5.35 million, reflecting effective cost control measures [4][6]. - The company achieved income from operations of $1.79 million, compared to $0.30 million in Q3 2024 [4]. Profitability - Massimo Group recorded net income of $1.53 million in Q3 2025, a significant turnaround from a net loss of $2.50 million in Q3 2024 [4][6]. - Earnings per share improved to $0.04 from a loss of $0.06 in the prior year [6]. Management Commentary - The CEO highlighted the focus on strategic execution, operational discipline, and cost leadership as key drivers for the recovery in gross margins and return to profitability [5].

Cannara Biotech Conference Summary Company Overview - **Company Name**: Cannara Biotech Inc. - **Stock Symbol**: LOVE (TSXV) - **Industry**: Canadian Cannabis - **Founded**: 2018 - **Headquarters**: Quebec, Canada - **Facilities**: Operates over 1.6 million square feet across two fully owned facilities in Quebec [2][5] Core Business and Market Position - Cannara Biotech is a vertically integrated cannabis company focused on producing premium-grade cannabis at scale, emphasizing profitability, innovation, and long-term value creation [2][4] - Currently the **seventh largest producer** in Canada by sales and **second largest** in Quebec, with a **12.8% market share** in Quebec, up from 9.7% a year ago [5][17] - Annualized production run rate is approximately **50,000 kilograms** (50 million grams) [5][6] Financial Performance - **Q3 2025**: Best quarterly financial results in the company's history - **Nine months of 2025**: - Net revenue: **$80 million** - Gross profit: **$32.7 million** - Gross margin: **41%**, with steady quarter-over-quarter increases [9][10] - Adjusted EBITDA: **$20.7 million** (26% of revenues) [10] - Net income: **$9.8 million**, a **53% increase** from the previous year [10] - **Cash Flow**: Generated **$17.2 million** in operating cash flow and **$12.3 million** in free cash flow in the first nine months of 2025 [11] Operational Highlights - Achieved a **26% increase** in capacity over the past year without additional capital costs [6][9] - Vertical integration allows full control over the cannabis supply chain, enhancing quality and efficiency [7][24] - Upcoming launch of a new vape category in Quebec, with **20% retail shelf space** already secured [8][17] Competitive Advantages - Strong operational platform with a focus on premium quality, scalable operations, and cost leadership [8][9] - Access to Quebec's low electricity rates of **$0.059 per kilowatt**, significantly lower than other provinces [26] - High barriers to entry in Quebec due to strict regulations on sales and marketing, allowing Cannara to thrive without heavy promotional activities [26][27] Strategic Initiatives - Plans for a **$10 million investment** in a new dedicated processing center to support growth and expand capacity to **100,000 kilograms** annually [16][24] - Focus on internal growth rather than external acquisitions, emphasizing operational discipline and quality [25][27] Market Trends and Outlook - The Canadian cannabis market is experiencing a shift, with a **41% surge** in estimated retail sales year-over-year, positioning Cannara as a leader in growth [16][17] - The company is well-prepared to meet unserved demand and capitalize on upcoming market opportunities, particularly in the vape segment [8][17] Conclusion - Cannara Biotech is positioned as a dominant player in the Canadian cannabis market, with a strong financial performance, operational efficiencies, and a clear growth strategy focused on quality and innovation [2][9][27]

Financial Data and Key Metrics Changes - The company achieved the highest free cash flow per share in its history at $0.54, driven by lower per unit costs and solid production performance [5][6] - Adjusted operating cash flow reached $900 million, and adjusted free cash flow was $460 million, with cash capital expenditures of $500 million [7] - Cash on the balance sheet increased from $479 million at year-end to approximately $700 million by March 31, and leverage decreased from 1x to 0.8x [7][8] Business Line Data and Key Metrics Changes - Oil production was 175,000 barrels per day, and total production was 373,000 barrels of oil equivalent per day, exceeding expectations [6] - Controllable cash costs were reduced by 4%, and drilling and completion costs decreased by 3%, landing at $750 per foot for the quarter [7] Market Data and Key Metrics Changes - Approximately 25% of 2025 oil production is hedged at a price just above $73 per barrel, allowing the company to be more opportunistic during downturns [9][10] Company Strategy and Development Direction - The company is focused on opportunistic investments during downturns, aiming to acquire high-quality assets with low breakeven costs [11][12] - A recent acquisition in New Mexico for $608 million adds approximately 12,000 BOE per day and enhances the company's operational footprint [12][13] - The company maintains a disciplined approach to mergers and acquisitions, ensuring that any new assets meet rigorous investment criteria [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current market and capitalize on opportunities, emphasizing a strong balance sheet and liquidity [5][9] - The company plans to reduce capital expenditures by $50 million while maintaining production at the high end of guidance, reflecting a dynamic approach to capital allocation [20][21] Other Important Information - The company redeemed $175 million in high-interest legacy notes, saving approximately $17 million annually in interest expenses [7] - Credit ratings have improved, with ratings of BA1 from Moody's and BB+ from S&P, positioning the company one notch away from investment grade [8] Q&A Session Summary Question: How does the New Mexico bolt-on acquisition compare to recent deals? - Management highlighted the low decline production base and the quality of inventory as key advantages of the New Mexico acquisition, which fits well with the company's M&A strategy [24][26] Question: What is the capacity for continued share buybacks? - Management indicated ample capacity for both acquisitions and share buybacks, emphasizing a patient approach to share repurchases [29][30] Question: Can you share details on the acquisition process? - The acquisition was a result of long-term discussions with the sellers, and the assets were already on the near-term drill schedule, providing a competitive advantage [37][38] Question: What is driving better-than-expected production? - The outperformance in production is attributed to the successful integration of recent acquisitions and improvements in artificial lift technology [40][41] Question: How does the company view the trade-offs in a weaker oil price environment? - The company maintains a focus on returns and flexibility, allowing for adjustments in activity based on market conditions while still generating strong returns [48][50] Question: What is the outlook for M&A opportunities? - Management expects continued opportunities for acquisitions in the Delaware Basin, particularly as motivated sellers may emerge in a downturn [59][60] Question: What is the current state of service costs in the industry? - Service costs are beginning to move lower, with some providers offering price concessions due to reduced activity [65] Question: How does the company plan to optimize the acquired assets? - The company plans to apply its peer-leading cost structure to the newly acquired assets, which have shown strong productivity [88][89]