Murphy USA reports lower revenue, profits; ups guidance for rest of year

Murphy USA, Inc. reported Wednesday (Oct. 30) lower revenue and profits in its third quarter compared to a year ago, in part due to a share buyback program, higher industry breakeven margins, and accelerated plans for growth based on market conditions. The company also made an upward revision to its guidance.

The El Dorado-based convenience store chain reported third quarter net income of $149.2 million versus $167.7 million one year ago. Diluted earnings per share for the quarter ended Sept. 30, 2024 were $7.20 compared to $7.69 a year ago.

Revenue for the quarter was $5.24 billion. One year ago, third quarter revenue topped $5.79 billion.

“Strength in our core categories continued to drive Murphy USA’s advantaged business model in the third quarter,” said Murphy USA 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.”

“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,” Clyde added.

Murphy USA officials said they would expand full-year capital expenditure expectations to a range of $500 million to $525 million, up from the original guided range of $400 million to $450 million, due primarily to “the successful efforts to pull forward future projects into the current year in addition to getting an earlier start on next year’s build class.”

In addition, Murphy USA revised downward its guidance for full-year general and administrative expenses to a range of $240 million to $250 million, down from the original guided range of $255 million to $265 million. The reduction is primarily due to lower employee costs, including both salaries and benefits, as well as the timing of certain initiatives, officials said.

Other key highlights included:

• Total fuel contribution for Q3 2024 was 32.6 cpg, compared to 34.5 cpg in Q3 2023;
• Merchandise contribution dollars for Q3 2024 increased 2.4% to $216.8 million on average unit margins of 20% compared to Q3 2023 contribution dollars of $211.8 million on unit margins of 20.1%;
• 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; and
• 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.

During the third quarter, Murphy USA repurchased approximately 244.4 thousand common shares for $126.4 million at an average price of $517.17 per share.

Murphy USA’s stock (NYSE: MUSA) closed trading Wednesday at $472.63 per share. The company’s stock has traded between $350.55 and $552.30 per share over the past 52 weeks.