Murphy USA Reports Q3 Net Income of $167M

Andrew Clyde, CEO of Murphy USA (Photo provided by Murphy USA)

Murphy USA Inc. of El Dorado reported strong third quarter results Wednesday, including net income of $167.5 million, or $7.69 per share.

The profit beat Wall Street analysts’ expectations by about $1.3 million. Revenue of $5.8 billion fell short of expectations, but CEO Andrew Clyde doesn’t view it as a sound metric of the fuel and convenience retailer’s performance.

Publicly traded MUSA had an uncommon year in 2022, when third-quarter net income was $219.5 million in the third quarter, or $9.28 per share.

Total fuel contribution in the quarter that ended Sept. 30 was 34.5 cents per gallon, well in the range of Clyde’s expectations, though down from 37.6 cents per gallon in the same quarter last year.

“Merchandise contribution dollars for Q3 2023 increased 3.0% to $211.8 million on average unit margins of 20.1%, compared to the prior-year quarter contribution dollars of $205.7 million on unit margins of 20.0%,” the company said in a news release.

MUSA repurchased about 201,000 common shares of stock for $65.3 million during the quarter, an average price of $325 per share.”

On Oct. 26, the company announced a quarterly cash dividend of 41 cents per share, or $1.64 per share on an annualized basis.

“We are very pleased with third quarter performance as we comp last year’s extraordinary earnings,” Clyde said in the release. “On a two-year stack basis, Murphy USA demonstrated industry leading fuel volume and tobacco gains, while current year fuel margins highlight the sustainability of elevated industry margins in a less volatile setting. Momentum carried through to October especially at QuickChek where new promotions and initiatives have contributed to record food and beverage profits.”