Murphy USA Reports Big Profits in Q1

Murphy USA of El Dorado (NYSE: MUSA) on Tuesday reported a surge in sales and income in the first quarter of 2022.

Net income was $152.4 million, or $6.08 per share, nearly tripling the previous year’s profit for the same period and easily outpacing analysts’ forecasts. The gasoline and convenience store retailer had net income of $55.3 million, or $2.01 per share, in the same period last year.

Same store sales increased 3.8% year over year, and the company’s total fuel contribution (retail fuel margin plus product supply and wholesale results) for the first quarter was 34 cents per gallon, compared to 22.5 cents per gallon the year before.

The chain opened six new Murphy Express stores in the quarter and one QuickChek store in the Northeast. Murphy USA acquired the New Jersey-based convenience store network in February 2021 for $654 million.

The company, a spinoff of Murphy Oil Corp., formerly of El Dorado and now of Houston, repurchased 800,000 shares of stock for $151.8 million during the quarter, and paid a quarterly cash dividend of 29 cents per share, a total cash outlay of $7.2 million.

“Our Q1 results continue to highlight the benefits of Murphy USA's advantaged and resilient low-cost business model, affordable everyday low prices, and incredibly engaged associates who go the extra mile for their customers," CEO Andrew Clyde said in a company statement.

“Through competitive pricing and promotions that resonate with our value-driven customers, we are profitably gaining share in established and emerging categories, as existing customer spending remains strong and new customers seek greater value in the current environment. This enduring advantage is key to the virtuous cycle through which all Murphy USA stakeholders win."