Murphy USA (MUSA)2025-02-20 11:16Retail Operations - The company sold approximately 4.8 billion gallons of motor fuel through its retail outlets in 2024[33]. - As of December 31, 2024, the company operated a total of 1,757 retail stores, with 368 located in Texas and 136 in New Jersey[34]. - As of December 31, 2024, the total number of branded retail outlets increased to 1,757 from 1,733 in 2023, with Murphy USA and Murphy Express outlets at 1,601[41]. - The company operates with a low-cost retail model, with 75% of its stores located on company-owned property, minimizing rent expenses[20]. - The company utilizes a standard POS system across all stores, enhancing operational efficiency and supporting third-party delivery services[48][50]. Financial Performance - The company repurchased approximately 3.5 billion repurchased over the past eleven years[23]. - The quarterly dividend was raised four times in 2024, increasing from 0.48 per share, resulting in an annualized dividend of 204.3 thousand in 2024, up from 386.0 million, with an additional $56.0 million outstanding on its revolving credit facility as of December 31, 2024[266]. Growth and Expansion - The company plans to build up to 50 new NTI locations and 30 raze-and-rebuild stores in 2025, targeting at least 50 NTI and 30 raze-and-rebuilds annually in future periods[26]. - The company aims to enhance its merchandise mix by developing higher-margin non-nicotine sales and expanding food and beverage capabilities[27]. - The company expects to maintain a disciplined capital expenditure program focused on organic growth, supported by a strong cash position and credit availability[22]. Employee and Human Capital - The company has approximately 17,200 employees as of December 31, 2024, contributing to its sustainable business model and organic growth opportunities[24]. - As of December 31, 2024, Murphy USA employed approximately 17,200 individuals, including 5,900 full-time and 11,300 part-time employees[63]. - The company has consolidated virtually all QuickChek benefit programs with its own, ensuring competitive benefit packages for all eligible employees starting in 2025[68]. - The company is committed to employee development through various initiatives, including mentorship programs and tuition reimbursement[69]. - Murphy USA's human capital management is driven by core principles of Integrity, Respect, Citizenship, and Spirit[65]. Market and Regulatory Environment - The retail gasoline industry is highly competitive, with significant competition from non-traditional retailers, impacting market share and pricing strategies[42][44]. - Consumer demand for motor fuel typically increases during the summer driving season, affecting revenues and sales volumes, which are generally higher in the second and third quarters[46]. - The company faces regulatory challenges related to environmental laws, which may increase operational costs and compliance requirements[52][58]. - The company is subject to stringent fuel economy standards and GHG emission regulations, which could adversely impact demand for its products[54][56]. - The company actively monitors changes in labor laws to ensure compliance and manage potential increases in labor costs[62]. Safety and Risk Management - The company emphasizes a strong safety culture, focusing on employee roles in identifying and mitigating safety risks[69]. - The company utilizes limited derivative instruments to manage commodity price risks, with a 10% change in benchmark prices having an immaterial impact on financials[265]. - Interest rate fluctuations tied to SOFR can affect the company's interest expenses, but a 10% change would also have an immaterial impact on financial statements[266].