Company Summary
Murphy USA Inc. is a leading independent retailer of motor fuel and convenience merchandise in the United States. The El Dorado, AR-based company, in its current form, came into existence following the 2013 spin-off of Murphy Oil Corporation’s downstream business into a separate, independent and publicly-traded entity.
Murphy USA markets refined products through a chain of retail stations, almost all of which are located near a Walmart supercenter, primarily in the Southeast, Southwest and Midwest United States.
As of Dec 31, 2023, the company had more than 1,700 retail fuel stations – under Murphy USA and Murphy Express brands – encompassing 27 states. Of the total, majority of the stores are branded Murphy USA, some are standalone Murphy Express locations, while the remaining are branded as QuickChek stores. Apart from the retail outlets, Murphy USA operates certain product distribution terminals and ethanol production plants.
The company, which caters to approximately 1.6 million customers daily, also owns a dedicated line space on the Colonial Pipeline - the largest refined products system in the country and the biggest gasoline mover.
Meanwhile, Murphy USA’s revenue was down 8.2% year over year to $21.5 billion in 2023, while the company’s income was $556.8 million (or $25.49 per diluted share), down 17.3% year over year. Operating cash flow fell to $784 million in 2023 from $994.7 million in 2022.
Murphy USA remains committed to returning excess cash to shareholders through continued share buyback programs. As part of this initiative, the fuel retailer repurchased a little more one million of its common stock through 2023. For the record, over the past five years, management has returned some $1.5 billion to shareholders in the form of stock buybacks.
Average retail gasoline prices per gallon during 2023 were $3.19 versus $3.63 in 2022. Total retail gallons rose 1.1% to 4,803.7 million gallons for the full year while same-store sales (SSS) volumes was down 1.3%. 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.