Motor fuel retailer Murphy USA Inc. (MUSA - Free Report) announced fourth-quarter 2023 earnings per share of $7, which beat the Zacks Consensus Estimate of $6.31 and came ahead of the year-ago profit of $5.21. The outperformance primarily reflects higher fuel margins and robust merchandise sales.
However, Murphy USA’s operating revenues of $5.1 billion fell 5.5% year over year and missed the consensus mark by $291 million due to a fall in the retail gasoline price.
Merchandise sales, at $1 billion, rose 2.9% year over year and came in line with our estimate. Revenues from petroleum product sales came in at $4 billion, below our estimate of $4.4 billion and down 7.2% from the fourth quarter of 2022.
Balance Sheet
As of Dec 31, Murphy USA — which opened 10 new retail locations in the quarter to take its store count to 1,733 — had cash and cash equivalents of $117.8 million and long-term debt (including lease obligations) of $1.8 billion, with a debt-to-capitalization of 68.3%.
During the quarter, MUSA bought back shares worth $162 million.
Guidance
The company projects 2024 fuel volume in the range of 240-245 thousand gallons on an APSM basis. Further, Murphy USA’s 2024 guidance includes 30-35 new stores and 35-40 raze-and-rebuilds, $860-$880 million in merchandise margin contribution, and $400-$450 million in capital expenditures.
Some Key Refining Earnings
While we have discussed MUSA’s third-quarter results in detail, let’s see how some other refining companies have fared this earnings season.
Phillips 66 (PSX - Free Report) reported adjusted earnings per share of $3.09, comprehensively beating the Zacks Consensus Estimate of $2.37. The outperformance can be primarily attributed to lower costs. This was partially offset by PSX’s declining refining margins worldwide.
For the reported quarter, Phillips 66 generated $2.2 billion of net cash from operations, down from $4.8 billion a year ago. PSX’s capital expenditure and investments totaled $634 million. It paid out dividends of $457 million in the reported quarter. As of Dec 31, 2023, cash and cash equivalents were $3.3 billion. Meanwhile, Phillips 66 reported a total debt of $19.4 billion, reflecting a consolidated debt to capitalization of 34%.
Meanwhile, another refining giant — Valero Energy (VLO - Free Report) — reported better-than-expected fourth-quarter earnings. EPS of $3.55 per share came in above the Zacks Consensus Estimate of $2.95. This was on account of VLO’s lower costs. Bringing more good news, the company increased its quarterly cash dividend on common stock by 5% to $1.07 per share.
At the end of 2023, VLO had cash and cash equivalents of $5.4 billion, while the company’s total debt and finance lease obligations amounted to $11.5 billion. Valero’s fourth-quarter capital investment was $540 million. Of the total, $460 million was allotted for sustaining the business.
Finally, we have Marathon Petroleum’s (MPC - Free Report) fourth-quarter adjusted earnings per share of $3.98, which comfortably beat the Zacks Consensus Estimate of $2.36. The outperformance primarily reflects the stronger-than-expected performance of its key Refining & Marketing segment. Operating income of the segment totaled $1.2 billion, above the consensus mark of $812 million.
MPC’s total refined product sales volumes were 3,612 thousand barrels per day (mbpd), up from 3,532 mbpd in the year-ago quarter. Also, throughput rose from 2,895 mbpd in the year-ago quarter to 2,931 mbpd and outperformed the Zacks Consensus Estimate of 2,891 mbpd.
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Motor fuel retailer Murphy USA Inc. (MUSA - Free Report) announced fourth-quarter 2023 earnings per share of $7, which beat the Zacks Consensus Estimate of $6.31 and came ahead of the year-ago profit of $5.21. The outperformance primarily reflects higher fuel margins and robust merchandise sales.
However, Murphy USA’s operating revenues of $5.1 billion fell 5.5% year over year and missed the consensus mark by $291 million due to a fall in the retail gasoline price.
Merchandise sales, at $1 billion, rose 2.9% year over year and came in line with our estimate. Revenues from petroleum product sales came in at $4 billion, below our estimate of $4.4 billion and down 7.2% from the fourth quarter of 2022.
Balance Sheet
As of Dec 31, Murphy USA — which opened 10 new retail locations in the quarter to take its store count to 1,733 — had cash and cash equivalents of $117.8 million and long-term debt (including lease obligations) of $1.8 billion, with a debt-to-capitalization of 68.3%.
During the quarter, MUSA bought back shares worth $162 million.
Guidance
The company projects 2024 fuel volume in the range of 240-245 thousand gallons on an APSM basis. Further, Murphy USA’s 2024 guidance includes 30-35 new stores and 35-40 raze-and-rebuilds, $860-$880 million in merchandise margin contribution, and $400-$450 million in capital expenditures.
Some Key Refining Earnings
While we have discussed MUSA’s third-quarter results in detail, let’s see how some other refining companies have fared this earnings season.
Phillips 66 (PSX - Free Report) reported adjusted earnings per share of $3.09, comprehensively beating the Zacks Consensus Estimate of $2.37. The outperformance can be primarily attributed to lower costs. This was partially offset by PSX’s declining refining margins worldwide.
For the reported quarter, Phillips 66 generated $2.2 billion of net cash from operations, down from $4.8 billion a year ago. PSX’s capital expenditure and investments totaled $634 million. It paid out dividends of $457 million in the reported quarter. As of Dec 31, 2023, cash and cash equivalents were $3.3 billion. Meanwhile, Phillips 66 reported a total debt of $19.4 billion, reflecting a consolidated debt to capitalization of 34%.
Meanwhile, another refining giant — Valero Energy (VLO - Free Report) — reported better-than-expected fourth-quarter earnings. EPS of $3.55 per share came in above the Zacks Consensus Estimate of $2.95. This was on account of VLO’s lower costs. Bringing more good news, the company increased its quarterly cash dividend on common stock by 5% to $1.07 per share.
At the end of 2023, VLO had cash and cash equivalents of $5.4 billion, while the company’s total debt and finance lease obligations amounted to $11.5 billion. Valero’s fourth-quarter capital investment was $540 million. Of the total, $460 million was allotted for sustaining the business.
Finally, we have Marathon Petroleum’s (MPC - Free Report) fourth-quarter adjusted earnings per share of $3.98, which comfortably beat the Zacks Consensus Estimate of $2.36. The outperformance primarily reflects the stronger-than-expected performance of its key Refining & Marketing segment. Operating income of the segment totaled $1.2 billion, above the consensus mark of $812 million.
MPC’s total refined product sales volumes were 3,612 thousand barrels per day (mbpd), up from 3,532 mbpd in the year-ago quarter. Also, throughput rose from 2,895 mbpd in the year-ago quarter to 2,931 mbpd and outperformed the Zacks Consensus Estimate of 2,891 mbpd.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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