Murphy USA Inc. (MUSA) Bundle
A Brief History of Murphy USA Inc.
Overview
Murphy USA Inc. is a leading retailer of gasoline and convenience store products, operating primarily in the United States. As of September 30, 2024, the company operates approximately 1,740 retail locations across 26 states.
Financial Performance
For the three months ended September 30, 2024, Murphy USA reported:
- Net income: $149.2 million
- Earnings per diluted share: $7.20
- Total revenue: $5.2 billion
In comparison, for the same period in 2023, the figures were:
- Net income: $167.7 million
- Earnings per diluted share: $7.69
- Total revenue: $5.8 billion
For the nine months ended September 30, 2024, the company reported:
- Net income: $360.0 million
- Earnings per diluted share: $17.17
- Total revenue: $15.5 billion
For the same nine-month period in 2023, the figures were:
- Net income: $406.8 million
- Earnings per diluted share: $18.47
- Total revenue: $16.5 billion
Operational Metrics
Key operational metrics for Q3 2024 include:
- Total fuel contribution: $404.2 million
- Total merchandise sales: $1.1 billion
- Retail fuel volumes: 1,239.3 million gallons
For the same period in 2023:
- Total fuel contribution: $419.0 million
- Total merchandise sales: $1.1 billion
- Retail fuel volumes: 1,214.9 million gallons
Balance Sheet Highlights
As of September 30, 2024, the key balance sheet figures included:
- Total assets: $4.4 billion
- Total liabilities: $3.6 billion
- Total stockholders' equity: $830.1 million
Dividends and Share Repurchase Program
During the nine months ended September 30, 2024, Murphy USA paid cash dividends totaling $27.1 million, with a per-share dividend of $1.31. The company also repurchased 698,855 shares for $320.4 million under its $1.5 billion share repurchase authorization initiated in May 2023.
Recent Developments
In October 2024, the Board of Directors declared a quarterly cash dividend of $0.48 per common share, which is payable on December 2, 2024. The company continues to focus on growth through both operational efficiency and strategic investments in its retail locations.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $149.2 million | $167.7 million |
| Earnings Per Share (Diluted) | $7.20 | $7.69 |
| Total Revenue | $5.2 billion | $5.8 billion |
| Total Fuel Contribution | $404.2 million | $419.0 million |
| Total Merchandise Sales | $1.1 billion | $1.1 billion |
| Retail Fuel Volumes | 1,239.3 million gallons | 1,214.9 million gallons |
As of September 30, 2024, Murphy USA maintains a robust financial position with a strong focus on shareholder returns and operational growth.
A Who Owns Murphy USA Inc. (MUSA)
Ownership Structure
As of 2024, Murphy USA Inc. has a total of 46,767,164 shares of common stock issued. The ownership of these shares is distributed among institutional investors, individual shareholders, and company insiders.
Institutional Ownership
Institutional investors hold a significant portion of Murphy USA's shares. The following table summarizes the major institutional shareholders as of 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 5,763,012 | 12.3% |
| BlackRock, Inc. | 4,564,100 | 9.8% |
| State Street Corporation | 3,231,200 | 6.9% |
| Wellington Management Group LLP | 2,760,500 | 5.9% |
| Invesco Ltd. | 2,000,000 | 4.3% |
Insider Ownership
Company executives and board members also own a portion of the shares. The following table details the insider ownership as of 2024:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Andrew Clyde | President & CEO | 1,200,000 | 2.6% |
| R. Craig Dyer | Executive Vice President | 750,000 | 1.6% |
| James W. Murphy | Chairman of the Board | 500,000 | 1.1% |
| Mary E. McGowan | Director | 100,000 | 0.2% |
Shareholder Composition
As of 2024, the overall shareholder composition is as follows:
| Type of Shareholder | Percentage of Total Shares |
|---|---|
| Institutional Investors | 45.0% |
| Insider Ownership | 15.0% |
| Retail Investors | 40.0% |
Recent Changes in Ownership
In the past year, Murphy USA has seen fluctuations in its ownership structure, primarily due to stock repurchases and changes in institutional holdings. The company repurchased approximately 698,855 shares at an average price of $458.46 per share during the nine months ended September 30, 2024.
As of September 30, 2024, the total long-term debt of Murphy USA was reported at $1.82 billion, reflecting the company's commitment to maintaining a balanced capital structure while managing shareholder returns.
Dividend Policy
Murphy USA has consistently paid dividends to its shareholders, with the most recent dividend declared at $0.45 per share. This reflects the company's strategy to return value to shareholders while investing in growth opportunities.
Murphy USA Inc. (MUSA) Mission Statement
Murphy USA Inc. aims to be the leading independent retailer of gasoline and convenience merchandise in the United States. The company focuses on providing customers with a best-in-class experience, leveraging its operational efficiencies, and maintaining competitive pricing. The mission statement emphasizes a commitment to safety, integrity, and community involvement while striving to enhance shareholder value.
Financial Overview
As of September 30, 2024, Murphy USA reported significant financial results:
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income (in millions) | $149.2 | $167.7 | -10.5% |
| Revenue (in millions) | $5,238.5 | $5,797.9 | -9.6% |
| Diluted Earnings Per Share | $7.20 | $7.69 | -6.4% |
| Operating Expenses (in millions) | $5,016.5 | $5,550.1 | -9.6% |
| Merchandise Sales (in millions) | $1,082.4 | $1,055.6 | +2.5% |
Operational Highlights
In the nine months ending September 30, 2024, Murphy USA's operational performance included:
- Total retail fuel sales volumes increased by 0.8%.
- Merchandise sales rose to $3.2 billion, a 3.0% increase compared to the prior year.
- Total fuel contribution was $1.1 billion, a decrease of 3.1% from the previous year.
Capital Expenditures and Growth Strategy
For 2024, Murphy USA anticipates capital expenditures ranging from $500 million to $525 million to support growth and development initiatives, primarily funded through operating cash flow and borrowings as needed.
Debt and Financial Obligations
As of September 30, 2024, Murphy USA's long-term debt was structured as follows:
| Debt Instrument | Amount (in millions) | Due Date | Interest Rate |
|---|---|---|---|
| 5.625% Senior Notes | $299.0 | 2027 | 5.625% |
| 4.75% Senior Notes | $496.9 | 2029 | 4.75% |
| 3.75% Senior Notes | $496.0 | 2031 | 3.75% |
| Term Loan | $386.5 | 2028 | 7.09% |
The total long-term debt, net of current maturities, stood at $1,820.0 million as of the end of Q3 2024.
How Murphy USA Inc. (MUSA) Works
Business Overview
Murphy USA Inc. operates a chain of retail stores primarily focused on gasoline and convenience store products. As of September 30, 2024, the company had a total of 1,740 stores, including 1,586 Murphy branded stores and 154 QuickChek stores.
Financial Performance
For the three months ended September 30, 2024, Murphy USA reported:
- Net Income: $149.2 million, or $7.20 per diluted share
- Revenue: $5.2 billion
- Net Income for Q3 2023: $167.7 million, or $7.69 per diluted share on revenue of $5.8 billion
The decrease in net income was attributed to lower total fuel contributions and increased operating expenses.
Segment Performance
Murphy USA's operations are segmented into Marketing, which includes retail marketing and product supply. The Marketing segment's net income for Q3 2024 was:
- Marketing Net Income: $168.0 million
- Corporate and Other Assets Loss: ($18.8 million)
- Total Net Income: $149.2 million
For the nine months ended September 30, 2024, the Marketing segment reported:
- Net Income: $417.3 million
- Corporate and Other Assets Loss: ($57.3 million)
- Total Net Income: $360.0 million
In comparison, the Marketing segment's net income for the same period in 2023 was $464.8 million.
Revenue Breakdown
The revenue breakdown for the three months ended September 30, 2024, was as follows:
| Revenue Source | Q3 2024 (Millions) | Q3 2023 (Millions) |
|---|---|---|
| Petroleum Product Sales | $4,121.4 | $4,658.8 |
| Merchandise Sales | $1,082.4 | $1,055.6 |
| Other Operating Revenues | $34.7 | $83.5 |
| Total Revenues | $5,238.5 | $5,797.9 |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, included:
| Expense Type | Q3 2024 (Millions) | Q3 2023 (Millions) |
|---|---|---|
| Cost of Goods Sold - Petroleum | $3,751.2 | $4,322.5 |
| Cost of Goods Sold - Merchandise | $865.6 | $843.8 |
| Store and Other Operating Expenses | $276.1 | $265.6 |
| Depreciation and Amortization | $62.8 | $57.5 |
| SG&A Expenses | $60.0 | $60.0 |
| Total Operating Expenses | $5,016.5 | $5,550.1 |
Fuel Contribution and Margins
For Q3 2024, the total fuel contribution was:
- Total Fuel Contribution: $404.2 million
- Retail Fuel Margin: 31.9 cents per gallon (cpg), up from 28.7 cpg in Q3 2023
- Total Retail Fuel Volumes: 1,239.3 million gallons, an increase of 2.0% from Q3 2023
For the nine months ended September 30, 2024, the total fuel contribution was:
- Total Fuel Contribution: $1.1 billion, a decrease of $34.1 million from the same period in 2023
- Retail Fuel Margin: 27.9 cpg, compared to 26.4 cpg in the same period of 2023
Merchandise Performance
Merchandise sales for Q3 2024 showed growth, with:
- Total Merchandise Sales: $1.1 billion, up from $1.055 billion in Q3 2023
- Merchandise Contribution: $216.8 million, compared to $211.8 million in Q3 2023
- Same Store Sales (SSS) Contribution: $211.4 million, an increase from $206.8 million in Q3 2023
Capital Expenditures
Murphy USA anticipates total capital expenditures for 2024 to be between:
- $500 million and $525 million, depending on the completion of new stores.
Debt and Liquidity
As of September 30, 2024, Murphy USA had:
- Total Senior Notes: $1.3 billion
- Term Loan Outstanding: $387 million
- Available Capacity under Revolving Credit Facility: $350 million
The company expects to generate sufficient cash from operations to fund its ongoing operating requirements and service its debt obligations.
How Murphy USA Inc. (MUSA) Makes Money
Revenue Sources
Murphy USA Inc. generates its revenue primarily through three main sources:
- Petroleum product sales
- Merchandise sales
- Other operating revenues
Petroleum Product Sales
For the three months ended September 30, 2024, petroleum product sales amounted to:
| Type | Q3 2024 ($ Millions) | Q3 2023 ($ Millions) |
|---|---|---|
| Retail Sales | 3,758.1 | 4,134.8 |
| Wholesale Sales | 363.3 | 524.0 |
| Total Petroleum Sales | 4,121.4 | 4,658.8 |
The decrease in petroleum product sales is attributed to lower retail fuel sales prices, which fell by 10.9% during this period, despite a 2.0% increase in fuel sales volumes.
Merchandise Sales
Merchandise sales for Q3 2024 totaled:
| Metric | Q3 2024 ($ Millions) | Q3 2023 ($ Millions) |
|---|---|---|
| Total Merchandise Sales | 1,082.4 | 1,055.6 |
Increased merchandise sales were driven by a rise in retail prices (up 7.8%) and a higher number of larger format stores.
Other Operating Revenues
Other operating revenues include revenues from Renewable Identification Numbers (RINs) and other miscellaneous items. For Q3 2024, these revenues were:
| Type | Q3 2024 ($ Millions) | Q3 2023 ($ Millions) |
|---|---|---|
| RINs | 32.7 | 81.8 |
| Other Revenues | 1.9 | 1.7 |
| Total Other Operating Revenues | 34.6 | 83.4 |
The significant decline in RINs revenue reflects lower market prices, averaging $0.60 per RIN in Q3 2024 compared to $1.41 in Q3 2023.
Financial Performance Overview
For the three months ended September 30, 2024, Murphy USA reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income ($ Millions) | 149.2 | 167.7 |
| Earnings per Share (Diluted) | 7.20 | 7.69 |
| Total Revenue ($ Millions) | 5,238.5 | 5,797.9 |
The decline in net income was primarily due to lower total fuel contributions and increased operating expenses.
Cost Structure
Murphy USA's operating expenses for Q3 2024 were as follows:
| Expense Type | Q3 2024 ($ Millions) | Q3 2023 ($ Millions) |
|---|---|---|
| Cost of Goods Sold (Petroleum Products) | 3,751.2 | 4,322.5 |
| Cost of Goods Sold (Merchandise) | 865.6 | 843.8 |
| Store Operating Expenses | 276.1 | 265.6 |
| Depreciation and Amortization | 62.8 | 57.5 |
| SG&A Expenses | 60.0 | 60.0 |
These figures reflect an overall increase in operational costs, driven by higher employee-related expenses and maintenance costs.
Market Expansion and Future Growth
Murphy USA plans to continue its expansion strategy with total capital expenditures expected to range from $500 million to $525 million in 2024. This includes new store developments and enhancements to existing locations.
Debt and Financial Obligations
As of September 30, 2024, Murphy USA had:
| Debt Type | Amount ($ Millions) |
|---|---|
| Senior Notes | 1,300.0 |
| Term Loan | 387.0 |
| Total Debt | 1,687.0 |
The company is confident in its ability to manage these obligations through cash generated from operations.
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Article updated on 8 Nov 2024
Resources:
- Murphy USA Inc. (MUSA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Murphy USA Inc. (MUSA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Murphy USA Inc. (MUSA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.