Murphy USA (US:MUSA)2022-03-09 18:22Financial Performance & Shareholder Value - Murphy USA has a strong record of delivering shareholder value, driven by strategy and execution[7] - Cumulative shareholder returns as of 12/31/2021 show MUSA outperforming the S&P 500 and Russell 2000 since spin-off, with returns of 417% compared to 188% and 119% respectively[9] - Adjusted EBITDA has increased significantly since 2017, reaching $828 million in 2021[10] - The company projects 2026 EBITDA to reach approximately $800 million in a base scenario and $1 billion in an upside scenario[58] Strategic Advantages & Growth Drivers - Structural shifts in the market, such as inflation and higher fuel margins, favor Murphy USA's advantaged model[8, 20] - The company's low-cost model allows it to retain higher residual margins compared to competitors[24, 25] - Murphy USA's low price position leads to profitable share growth, gaining share across extreme periods of price volatility[32] - The integration of QuickChek has validated the investment, with year-one synergies realized at over $8 million and an all-in merchandise gross profit of 33%[39, 40] Capital Allocation & Future Investments - The company is focused on long-term organic growth and disciplined capital allocation, balancing growth investments with share repurchases[51] - Murphy USA expects to spend $350 million to $400 million on capital expenditures in 2022[68] - The company repurchased approximately 50% of shares outstanding, with emphasis in periods of share price volatility[51]