Murphy USA Achieves Record EBITDA, Sets Sights on Continued Growth
On February 6th, Murphy USA reported its fourth-quarter earnings for 2024, showcasing a record-breaking $1 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA). Despite facing challenges such as rising prices, severe weather, and pressure on food inflation, the company demonstrated resilience and adaptability.
Murphy USA's CEO, Andrew Clyde, expressed satisfaction with the company's performance, stating that it delivered just over $1 billion of EBITDA in 2024. He emphasized the importance of accelerating new store growth, improving store performance across the network, and innovating to better serve customers. The executive acknowledged that 2024 was a disappointing year due to various factors, including rising prices, severe weather, and pressure on food inflation.
However, despite these setbacks, Murphy USA's branded network delivered impressive results, growing per-store merchandise sales and margin dollars by 3.5% and 5.9%, respectively, for the full year 2024. The company also reported a significant increase in center store categories, with total non-nicotine margin growth of 7.2% versus the fourth quarter of 2023.
The retail margins also showed an improvement of 50 basis points to $0.281 per gallon, reflecting structural industry pressures on marginal players. This achievement is particularly noteworthy given the less favorable supply-demand balance and other factors impacting petroleum products & wholesale (PS&W) business. Clyde stressed that this improvement in retail margins occurred despite conditions that historically have been less favorable to retail margin capture.
The company's fundamental thesis remains intact, with a long-term track record of demand stability and high-return organic growth investments accelerating core business performance. Murphy USA's balanced capital allocation levers of store growth and share repurchase have delivered significant returns to investors since the 2013 spin.
As the company sets its sights on continued growth, it is clear that Murphy USA remains a formidable player in the industry. With a record-breaking EBITDA and a solid foundation for future expansion, investors can expect exciting times ahead for this leading retail and wholesale business.
