MAKING THE BUSINESS BETTER
2024 ANNUAL REPORT AND 2025 PROXY STATEMENT
2020
2021
2022
2023
2024
FUEL METRICS
Total retail gallons sold (in billions)
3.901
4.352
4.752
4.804
4.821
Retail fuel gallons sold (per store month)
219,520
229,404
244,582
242,026
240,632
Total fuel contribution (cents per gallon)
25.2
26.3
34.3
31.4
30.5
MERCHANDISE METRICS
Total merchandise sales ($ billions)
$
2.955
$
3.678
$
3.903
$
4.089
$
4.215
Total merchandise margin dollars (per store month)
$ 25,850
$ 35,607
$ 38,025
$ 39,124
$ 40,407
Merchandise unit margins (%)
15.6%
19.1%
19.7%
19.7%
19.8%
Non-nicotine margin dollars (per store month)
$ 10,159
$ 19,218
$ 21,055
$ 21,856
$ 22,027
Total non-nicotine unit margins (%)
22.0%
28.5%
29.4%
29.6%
29.7%
FINANCIAL METRICS ($ MILLIONS)
Net income from continuing operations
$
386.1
$
396.9
$
672.9
$
556.8
$
502.5
Adjusted EBITDA1
$
722.7
$
828.0
$ 1,190.9
$ 1,058.5
$ 1,006.8
Cash and cash equivalents
$
163.6
$
256.4
$ 60.5
$ 117.8
$ 47.0
Capital spending
$
227.1
$
277.5
$
305.8
$
344.1
$
503.0
Long-term debt
$
951.2
$ 1,800.1
$ 1,791.9
$ 1,784.7
$ 1,832.7
Market capitalization
$ 3,566.0
$ 4,968.1
$ 6,080.0
$ 7,429.8
$ 10,043.2
Ending share price ($ per share)
$ 130.87
$ 199.24
$ 279.54
$ 356.56
$ 501.75
Index (100 as of 12/2018)
50
200
150
100
350
300
250
Murphy USA Stock Performance
Indexed from December 31, 2019 to December 31, 2024
Based on Ending Price of Each Period
439
MURPHY USA INC.
S&P 500 INDEX
S&P Retail Select Index
12/31/2019
12/31/2020
12/31/2021
12/31/2022
12/31/2023
12/31/2024
188
182
400
450
500
0
45
10
5
-5
20
15
35
Total Shareholder Return, Annualized
From December 31, 2021 to December 31, 2024
Based on 10-Day Average Price at End of Each Period
MURPHY USA INC.
S&P 500 INDEX
S&P RETAIL SELECT
INDUSTRY INDEX
40
30
25
38.8%
8.1%
-1.4%
FINANCIAL
HIGHLIGHTS
1 Please refer to the reconciliation in Appendix A of the Notice of
2024 Annual Meeting of Stockholders and Proxy Statement included herein.
I had the chance to engage with several
long-term shareholders in the closing
weeks of 2024 who asked me to remind
them what the primary success factors
were that got the company to where it
is today, and how do we continue this
remarkable performance. Reflecting
on my long-tenured agenda and
overarching strategy that helped develop
the people, processes and technology
to transform the company over the past
decade, three themes stood out:
• We have made the business better
• We can win in any environment
• Balanced Capital Allocation
maximizes returns to shareholders
Making the Business Better: Dating
back to our 2013 spin-off, we have
successfully transformed MUSA’s business
through a series of multi-part campaigns
that have established our low-cost
structure, endeared customer loyalty, and
enhanced our overall competitiveness.
By clearly defining our opportunities
and objectives at spin, we preemptively
improved efficiency through a series
of initiatives to significantly reduce our
store labor expense and merchandise
supply costs, both of which lowered our
fuel breakeven cost and improved the
competitive moat around our everyday
low-price advantaged business model.
Through our recent Digital Transformation
campaign, we have created a set of
digital capabilities that help us better
understand our customer and strengthens
our already advantaged business
model with more speed, insights and
agility. These capabilities help to inform
our pricing and assortment decisions,
deliver more effective promotions, and
create more value for our customer.
The unequivocal success of Murphy
Drive Rewards has greatly influenced
the design, architecture, and roll out
of the new and improved QuickChek
rewards program in late 2024, a
milestone we are very excited about.
Over the past few years, we executed a
fulsome and ambitious agenda grounded
in our commitment to improving capital
returns through growth, innovation and
productivity. We have invested in our
new store pipeline in preparation for
accelerating our new store growth with a
goal of putting up to 50 highly productive
2,800 square foot stores into service in
2025. In addition to new store growth,
we are razing and rebuilding our older
kiosks, transforming them into 1,400
square foot stores and remodeling our
larger format stores. Collectively these
efforts are improving our customer
reach, expanding our offer and keeping
our network fresh and attractive.
Today, we are allocating resources
against a new set of initiatives that
can further enhance the potential
of our business, including our Store
Productivity Excellence campaign
which will significantly improve
operational productivity across
our large network of stores.
Winning in Any Environment: What
our industry has witnessed in the past
five years is unprecedented: a 50%
demand shock; a doubling of industry
fuel margins; record price volatility; the
final disintegration of the refiner/marketer
model; rampant inflation; and more.
Most important beyond the significance
of the one-time structural shift in industry
margins is the marginal retailer’s ability
to pass through the impact of higher
volatility and underlying cost pressures.
This appears to be an enduring dynamic
that should accrue to MUSA’s benefit
over time, even if disguised short-term
by other temporal shifts in margins.
In that setting, MUSA has demonstrated
its ability to win across the spectrum of
dynamics we have witnessed. Our EDLP
positioning generates significant volume
gains in high price settings. Our low cost
of product ensures ratable, secure supply
in disruptive settings. Our improved retail
pricing capabilities have adapted to the
ever-changing competitive landscape.
Our enhanced loyalty efforts create
additional value when prices run up and
greater stickiness when prices fall. To you
the shareholder, it should be clear that
our Make the Business Better initiatives
ensure we retain most of the penny profit
we earn from higher fuel margins. Should
margins temporally dip like we witnessed
in 2024 when the refined product
supply/demand balance was longer
than expected, we are able to maintain
our competitive positioning and EDLP
value proposition with the confidence
that the longer-term sustainable
equilibrium will ultimately persist.
Balancing Capital Allocation: While we
have witnessed unprecedented change in
our industry, the resilience of our business
model provides continued confidence
and commitment to our disciplined,
balanced capital allocation strategy.
This strategy utilizes our significant cash
flow generation to both grow our network
organically at high returns and maintain
our share repurchase commitments with
free cash flow. Thus, the key imperative for
management becomes simple: focus on
what we can control, which is, in short, to
make the business better. The rest should
take care of itself, as we have successfully
demonstrated since our 2013 spin-off.
As shareholders, you can expect
continuity in our strategy, our leadership
philosophy, and our relentless commitment
to making the business better. We hope
we have earned your trust and can rest
assured that the Murphy USA leadership
team is fully committed, internally aligned,
and laser-focused, now and in the
future, to win with all its stakeholders.
Letter To Shareholders - Making the Business Better
R. Andrew Clyde
President and Chief Executive Officer
PAGE 3
ANNUAL REPORT 2024
1.
STRATEGY
GROW ORGANICALLY
Our commitment to organic growth continues
to enhance the quality and attractiveness
of our network, improve the customer
experience, further diversify our merchandise
mix, and provide both our customers and
our shareholders with more value.
In 2024, we added 32 new stores, including
4 QuickChek locations, growing the network
to 1,757 stores. We also completed 47
raze and rebuilds, which transform a kiosk
into a higher-performing 1,400 square foot
store. New stores remain the primary driver
of our growth strategy, bolstered by a high-
quality, multi-year development pipeline.
We plan to build up to 50 new stores in 2025.
Innovation is central to our future store
development strategy. In 2024 we renovated
many of our larger-format 2,800 square
foot stores to optimize selling space and
provide customers with a better shopping
experience. Additionally, we opened the
“Store of Tomorrow” in North Myrtle Beach, SC,
featuring an updated look and feel with a bold
color scheme, branding, and new features such
as self-checkout. While only a prototype, this
project will help influence and optimize our
new store investments in the years ahead.
Raze & Rebuilds by Year
2020
33
2021
27
2022
32
2023
31
2024
47
158
QUICKCHEK
Growth of Murphy Retail Stores
Murphy USA and QuickChek Locations
2020
1,503
1,521
1,679
157
1,555
1,712
2021
2022
156
1,577
1,733
2023
156
1,601
1,757
2024
MURPHY USA
PAGE 5
ANNUAL REPORT 2024
North Myrtle Beach, SC
2024 Merchandise contribution dollars increased over
$30 million to $834 million in 2024, reflecting sales
and margin growth of 3.1% and 3.8%, respectively.
We continue to gain share in nicotine categories, which
drove 6.6% total contribution dollar growth. Non-nicotine
contribution dollars were up 1.3% and gained momentum
in the fourth quarter as benefits were realized from
productivity initiatives implemented in the second half.
We are leveraging the enhanced capabilities of our Murphy
Drive Rewards loyalty program to help drive sales and grow
margin dollars. We also re-launched QuickChek Rewards in
the fourth quarter, a loyalty program that is more relevant to
more customers, driving 25% membership growth in 2024.
We expect the distinctive capabilities and enhanced digital
interface to positively impact customer behavior in 2025.
Unit margins increased slightly in 2024 as strength in
nicotine continues, matching growth in higher margin
non-nicotine dollars. As we continue to build larger
stores with a more diversified mix, we expect to drive
unit margins higher over time, further supported by
efficiency initiatives and new marketing capabilities.
2.
STRATEGY
DIVERSIFY
MERCHANDISE MIX
2020
2021
2022
2023
2024
LTM Y-O-Y
Change
2,955
3,678
3,903
4,089
4,215
3.1%
459
702
767
803
834
3.8%
Merchandise GM ($ in millions)
Merchandise Sales ($ in millions)
2020
15.6%
19.1%
2021
19.7%
2022
19.7%
2023
19.8%
2024
Merchandise Unit Margin %
Merchandise Margin
$K Average Per Store Month
2020
10.2
$25.9*
$35.6*
16.2
19.2
16.9
2021
$38.0*
21.1
17.7
2022
$39.1*
21.9
18.1
2023
$40.4*
22.0
19.2
2024
NICOTINE
NON-NICOTINE
*Totals reflect the impact of MDR/QCR discounts and deferrals
Note: 2021 only includes 11 months of QuickChek business
PAGE 7
ANNUAL REPORT 2024
In order to support our everyday-low price
strategy, we must always remain vigilant in
minimizing inflationary impacts and other cost
pressures on our business to help maintain
our low-cost structure. This deep-rooted
cultural imperative must also be balanced
with the need for growth and innovation, as
we better serve customer needs through an
enhanced offer in a larger-store format.
In 2024, our per store operating costs were
up 5.2%, reflecting both broader inflationary
pressures and the incremental cost of the
high-performing larger format stores we are
adding to the network. Importantly, while
growing our merchandise contribution, our
low-cost structure remains advantaged relative
to the industry average, allowing Murphy
USA to be more competitive as weaker
retailers who lack scale ultimately pass on
incremental costs through higher fuel prices.
The coverage ratio reflects these impacts as
larger new stores ramp to maturity. We expect
the coverage ratio to stabilize as our new
stores continue to mature and we consistently
deliver around 40-50 new stores per year.
OUR LOW-COST
STRUCTURE REMAINS
ADVANTAGED RELATIVE TO
THE INDUSTRY AVERAGE
3.
STRATEGY
SUSTAIN COST LEADERSHIP
Store Operating Expenses Versus Industry Average
Store Operating Expenses,* $K Average Per Store Month
2020
*Store Operating Expense excludes SG&A, Field Admin cost, and payment fees
**2024 Industry Store Operating Expense data not yet available, NACS store set differs from PY
2021
$22.1
INDUSTRY**
MURPHY USA
QUICKCHEK IMPACT
$31.0
$23.3
$63.1
$51.0
2022
$34.2
$7.7
2023
$35.9
$27.0
$64.0
$65.9
$8.9
2024
$37.8
$28.7
$9.1
$8.4
$25.8
*Merchandise Margin/Store Operating Expense
plus allocated G&A and other expenses
Coverage Ratio*
2020
2021
98.0%
102.1%
2022
100.1%
2023
98.0%
2024
96.3%
Note: 2021 only includes 11 months of QuickChek business
PAGE 8
MAKING THE BUSINESS BET TER
Higher volatility in the markets typically translates to more
fuel contribution dollars for Murphy USA shareholders.
However, volatility has waned over the past two years,
as reflected in lower all-in fuel margins which have declined
from 34.3 cents per gallon in 2022 to 30.5 cents per gallon
in 2024. We expect all-in margins to remain within a
30.5-32.5 cent range in 2025, the high end of which was
defined by a significant downward move in prices in 2022.
Importantly, retail fuel margins were up 50 basis points to
28.1 cents per gallon in 2024, supporting our view that
inflationary pressures force weaker retailers to price higher,
compensating for lower volumes and higher costs. With an
advantaged cost structure and EDLP value proposition,
Murphy USA remains well positioned to gain market
share profitably.
While future volatility and the factors that impact fuel
prices can never be fully known, we believe the structural
pressures impacting margins will remain elevated, further
benefiting Murphy USA.
4.
STRATEGY
CREATE ADVANTAGE FROM
MARKET VOLATILITY
PAGE 10
MAKING THE BUSINESS BET TER
MURPHY USA REMAINS WELL
POSITIONED TO GAIN MARKET
SHARE PROFITABLY
2020
Total Fuel Margin
(cents per gallon)*
*Cents per gallon based on retail volumes, before corporate overhead
RETAIL
PRODUCT SUPPLY AND WHOLESALE + RINS
2021
2022
2.3
22.9
25.2
4.4
21.9
26.3
4.7
29.6
34.3
2023
3.8
27.6
31.4
2024
2.4
28.1
30.5
Note: 2021 only includes 11 months of QuickChek business
Total Fuel Contribution
(in millions)
2020
2022
$982
87
895
$1,630
225
184
1,405
2023
$1,508
1,324
113
2024
$1,470
1,357
2021
$1,144
193
951
RETAIL
PRODUCT SUPPLY AND WHOLESALE + RINS
Earnings Per Share
2020
$13.08
2021
$14.92
$28.10
2022
$25.49
2023
$24.11
2024
Income from Connuing Operaons—Diluted
2020
2021
27.2
24.9
2022
21.7
2023
20.8
2024
20.0
Total Shares Outstanding
Fiscal Year End Since Spinoff
(in millions)
2013
Spin
46.8
nearly 60% repurchased
Annual Capital Expenditures
(in millions)
2020
2021
178
23
26
$227
224
32
$278
MAINTENANCE
CORPORATE AND OTHER ASSETS
GROWTH
22
2022
246
27
$306
33
2023
237
55
$344
52
2024
394
39
$503
70
5.
STRATEGY
INVEST FOR
THE LONG TERM
We allocate capital like we are owners,
building more stores and buying back more
shares of the company each year.
Given the health of our new store pipeline and
high returns from our new store investments,
we significantly increased our capital budget
in 2024 to just over $500 million. This higher
level of capital spend in 2024 will provide a
stable and sustainable platform to deliver more
high-quality new stores going forward. When
coupled with performance improvements we
see from our other slate of investments, including
Digital Transformation, store remodels, raze
and rebuilds, and the new QuickChek Rewards
program, we are unlocking value and generating
higher returns from our retail assets, further
differentiating our advantaged business model.
Historically, a balanced capital allocation strategy
featuring the core pillars of organic growth and
share repurchase has delivered exceptional total
shareholder returns. We will continue to execute
this same strategy in 2025 and beyond, paving
the way for future long-term value creation.
PAGE 13
ANNUAL REPORT 2024
Note: 2021 only includes 11 months of QuickChek business
1
2
3
4
Total United Way Campaign Pledges
With Murphy USA Match
MAD Playscape
Of Employee Board Members
Serve On Local Boards
Awarded To Employees Through
The Murphy Employees Disaster
Relief Foundation
$1M
$150K
84%
$400K
More than
More than
SAU Student Athlete Success Center
To The UAMS Union County
Residency Program
To Fight Cancer Through Free
Mammograms, Financial Grants For
Cancer Treatments, And Research
Supporting Union County Food Banks
El Dorado Education Foundation
To Combat Hunger In New Jersey
& New York
Corporate Sponsorship For Local Schools
Servings Of Produce Harvested At
America’s Grow-A-Row
$250K
$150K
$65K
$8K
$10K
$15K
$7K
$100K
Committed To Help Those With
Disabilities Through Alternatives, Inc.
At Murphy USA, we know our principles cultivate a culture of being Big-Hearted,
Empowered, and United. These characteristics drive our Giving Strategy of
(1) Hometown Giving & Quality of Life, (2) Youth Causes & Education,
(3) Healthcare Accessibility, and (4) Food Insecurity. Our Giving Strategy reflects
our “We Are Murphy USA” brand in a way that represents who we are today and
the legacy we hope to leave in the future.
F U E L I N G C O M M U N I T I E S & E M P O W E R I N G F U T U R E S
GIFT
MATCHING
OUR EMPLOYEES ARE BIG-HEARTED
2024 Gift Matching Total
$1,141,779
SUSTAINABLE GROWTH UNDERPINNED BY FIVE ESG PILLARS
ALIGNED
Ensure our credibility with
investors through strong
business ethics, good
corporate governance and
effective capital allocation
COMMITTED
Invest our resources to
strengthen the communities
we serve and
their environment
ENGAGED
Empower our people
through an inclusive and
diverse culture, competitive
total rewards programs,
and fulfilling career
opportunities
AFFORDABLE
Serve customers with
everyday low prices
for the fuels, merchandise
and food and beverage
products they need
RESPONSIBLE
Build trust with consumers,
regulators and partners by
exceeding expectations
in data protection, age
verification, and safety
266K
Raised In 2024 For
Boys & Girls Clubs Of America
Across The Country
Donated Since Our BGCA
Partnership Began In 2020
$3M
$11.2M
More Than
More Than
YOUTH CAUSES
AND EDUCATION
HOMETOWN
GIVING AND
QUALITY OF LIFE
FOOD
INSECURITY
HEALTHCARE
ACCESSIBILITY
FORM 10-K
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