Murphy USA Reports 3Q Income of $67M, Nearly Matching Last Year’s

Murphy USA Inc., the national gasoline and convenience store chain based in El Dorado, announced third-quarter financial results Wednesday afternoon, including net income of $66.9 million, down a fraction from the same quarter last year.

At  $2.27 per diluted share of stock, the third-quarter net income compared to $69.2 million, or $2.18 per diluted share, in the third quarter of 2019.

Earnings, adjusted for non-recurring costs, were $2.61 per share. The results topped Wall Street expectations of $2.56 per share, according to The Associated Press.

While the company sold fewer gallons of gasoline, 11.9% less than in the same period last year, merchandise sales contributed 6.2% more than last year, $118.1 million compared to the 2019 quarter. Average unit margins this year were 15.6%.

The company opened four new stores in the quarter and reopened five razed and rebuilt sites, while repurchasing 700,000 shares of stock for $89.9 million, an average price of $136.98 a share. The company’s stock (NYSE: MUSA) closed Wednesday at $124.62 per share. 

The company “delivered strong third-quarter performance as continued improvements in customer traffic, sustained gains and double-digit sales growth in key merchandise categories, along with higher total fuel margins in a rising price environment, shaped performance for the past three months,” President and CEO Andrew Clyde said in a statement.

“These trends have continued into October, where traffic continues to rebound and same-store fuel gallons have recovered to 94% of prior year,” Clyde continued. “As we begin to put 2020 in the rear view mirror, we are excited about our accelerated 2021 growth plans and our enhanced shareholder-friendly capital allocation strategy.”

The company updated that capital allocation strategy on Wednesday as well, authorizing new stock repurchases of $500 million on top of its current $400 million. The buybacks are to be completed by the end of 2023, the company said.

“The timing and amount of any shares repurchased will be determined by the Company’s management based on its evaluation of market conditions and other factors,” a corporate statement said, citing “ongoing volatility and increasing uncertainty impacting equity markets, coupled with potential regulatory action or fiscal policy changes.”

The board of directors also initiated a quarterly $0.25 per share dividend, or $1.00 per share annualized, with an initial quarterly dividend payable December 1, 2020 to shareholders of record as of Nov. 13, 2020. 

 The company plans an earnings conference call at 10 a.m. Thursday. Interested parties are encouraged to dial 1-833-968-2218 and input conference ID number 4728178. The call can also be heard on a webcast at http://ir.corporate.murphyusa.com.