Murphy USA Inc. Reports Third Quarter 2024 Results

Murphy USA Inc. (NYSE:MUSA), a leading marketer of retail motor fuel products and convenience merchandise, today announced financial results for the three and nine months ended September 30, 2024.

Key Highlights:

• Net income was $149.2 million, or $7.20 per diluted share, in Q3 2024 compared to net income of $167.7 million, or $7.69 per diluted share, in Q3 2023

• Total fuel contribution for Q3 2024 was 32.6 cpg, compared to 34.5 cpg in Q3 2023

• Total retail gallons increased 2.0%, and volumes on a same store sales ("SSS") basis increased 0.5%, in Q3 2024 compared to Q3 2023

• Merchandise contribution dollars for Q3 2024 increased 2.4% to $216.8 million on average unit margins of 20.0%, compared to Q3 2023 contribution dollars of $211.8 million on unit margins of 20.1%

• During Q3 2024, the Company repurchased approximately 244.4 thousand common shares for $126.4 million at an average price of $517.17 per share

• The Company paid a quarterly cash dividend of $0.45 per share, or $1.80 per share on an annualized basis, on September 5, 2024, a 2.3% increase from June of 2024, for a total cash payment of $9.2 million

• On October 24, 2024, the Company announced a quarterly cash dividend of $0.48 per share, or $1.92 per share on an annualized basis, reflecting a 6.7% increase from the prior quarter. The dividend is payable on December 2, 2024, to stockholders of record as of November 4, 2024

"Strength in our core categories continued to drive Murphy USA's advantaged business model in the third quarter," said President and CEO Andrew Clyde. "Retail fuel margins were over 3 cpg higher than 2023, and per store volumes grew 1.1%, as pricing dynamics continue to reflect higher industry breakeven margins. Within the Murphy branded stores, total merchandise margin dollars were up 5.9% reflecting strength in both nicotine and non-nicotine categories while there were continued headwinds in the Northeast QuickChek markets. As our innovation and business improvement initiatives take hold, our network grows, and we continue to take share on key categories, we are well-positioned to compete and win with our value-conscious customers. We are accelerating our new-store build program in 2024 and 2025, which is generating strong returns and remains the primary growth driver of the business over the next five to ten years."

Consolidated Results

Net income and Adjusted EBITDA for Q3 2024 declined versus the prior-year quarter, due primarily to lower total fuel contribution and higher store operating expenses, which were partially offset by higher retail fuel volumes and higher overall merchandise contribution.

Fuel

Total fuel contribution dollars of $404.2 million decreased $14.8 million, or 3.5%, in Q3 2024 compared to Q3 2023 due to lower total fuel contribution margins partially offset by higher retail volumes sold during the period. Retail fuel contribution dollars increased $47.1 million, or 13.5%, to $395.7 million compared to Q3 2023 due to higher retail fuel margins combined with higher volumes sold. For Q3 2024, retail fuel margins were 31.9 cpg, an 11.2% increase versus the prior-year quarter, and overall retail volumes were 2.0% higher in Q3 2024 compared to the prior-year quarter. PS&W contribution including RINs decreased $61.9 million when compared to Q3 2023, primarily due to negative impacts of timing and inventory pricing adjustments in a falling market.

Merchandise