Murphy USA, the national fuel and convenience store chain based in El Dorado, reported quarterly earnings yesterday that surpassed analysts’ expectations with net income of $69.2 million, or $42.18 per diluted share, for the third quarter of 2019.
That profit compares with $45 million in income from the third quarter of 2018, and total retail gallons of fuel sold increased 5.3%. The company said net income, adjusted EBITA and diluted earnings per share were driven up by fuel and merchandise sales, partially offset by higher operating expenses. Total dollars contributed by fuel were up 30.6%, and operating revenues were $2.74 billion compared with $3.15 billion a year ago.
The company opened five new retail stores in the quarter, bringing the total to 1,479 locations, including 1,130 Murphy USA sites and 319 Murphy Express stations. The company also repurchased 1.2 million common shares for $109 million. Spirits among Murphy USA investors have been up recently as fuel prices have declined, leading to expectations of better margins.
“The third quarter performance clearly demonstrates some of the benefits of recent investments as adjusted EBITDA grew 51% over the prior year, capitalizing on market share gains in both the fuels and merchandise business,” President and CEO Andrew Clyde said in a statement.
“New stores are also outperforming the network, which gives us a high level of confidence ahead of an increase in our organic growth over the next several years.
“Finally, we refinanced the balance sheet to accelerate our share repurchase activity in the third quarter, jump-starting the benefits we expect from our previously announced up to $400 million share repurchase program.”
The results, which were reported to the Securities & Exchange Commission, were released after the market close on Wednesday.
Murphy USA stock was at $94.84, up by 1.32%, but shares were up to $101 in pre-market trading, up 6.4%.
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