Murphy USA recorded a fourth quarter boost in net income that added to the company’s yearly bottom line.
The El Dorado-based convenience store chain reported $61 million in 2020 fourth quarter profits, which jumped annual net income to $386.1 million. The company said fuel and merchandise margins propelled the nearly 150% increase in annual profits.
Murphy USA officials did not disclose revenue results in its preliminary earnings release. A full earnings report is expected to be released on Feb. 3, 2021.
During the fourth quarter, Murphy USA announced an agreement to acquire QuickChek Corp. of New Jersey in an all-cash transaction for $645 million.
“As we exit 2020, we are excited to embark upon a new chapter in our value creation strategy as outlined in our October 2020 Capital Allocation update, which included a higher rate of planned organic growth, continuing to return capital through share repurchases, a newly announced $0.25 per share quarterly dividend, and the potential for select M&A activity, including to accelerate development of food and beverage capabilities,” said Murphy USA President and CEO Andrew Clyde.
“In December 2020, we took an important first step in executing the M&A element of our strategy, announcing the planned acquisition of QuickChek, and its distinctive brand and customer value proposition, for $645 million. The acquisition will transform existing organic growth plans in attractive markets and accelerate and de-risk the roll-out of Food and Beverage platforms across the network. We plan to update the market with our combined performance expectations for the two firms when we provide 2021 guidance, which we expect to announce in conjunction with our fourth quarter and full-year earnings release on February 3, 2021,” Clyde said.