Murphy USA: Fueling Growth with Strategic Partnerships and Expansion

As an investor, keeping tabs on the companies you've got your eye on is crucial. That's why I'm excited to share that Murphy USA Inc. (MUSA) has just announced the schedule for its fourth quarter 2024 results conference call. The company will release preliminary results after market close on Wednesday, February 5, 2025, followed by a conference call at 10:00 a.m. CT on Thursday, February 6, 2025. This is a great opportunity for investors to stay informed about the company's performance and growth prospects.

Murphy USA, a leading retailer of gasoline and convenience merchandise, operates over 1,700 stores across the United States. The company's strategic partnership with Walmart has been a significant driver of its success, allowing it to leverage Walmart's extensive customer base and retail footprint. This collaboration has not only enhanced Murphy USA's market presence but also contributed to its consistent revenue from fuel sales and ability to maintain margins even in fluctuating markets.

One of the key factors contributing to Murphy USA's growth is its expansion into larger format stores. The company's plans to invest between $500 million and $525 million in total capital expenditures for 2024, with a significant portion earmarked for retail growth, are expected to drive revenue and earnings growth in the coming years. This investment includes the development of larger format stores, which are anticipated to generate predictable and consistent incremental EBITDA in the upcoming years.

Murphy USA's commitment to share repurchases is another factor that is expected to influence its earnings per share and shareholder value over time. The company has $1.1 billion remaining under board authorization for share repurchases, which can be used to buy back shares from the market. By reducing the number of outstanding shares, the company can increase its earnings per share and enhance shareholder value through an increase in the stock price.



Analysts are assuming Murphy USA's revenue will grow by 6.8% annually over the next 3 years, and its profit margins will remain the same at 2.8% over the same period. Based on these assumptions, analysts expect earnings to reach $623.1 million (and earnings per share of $31.62) by about January 2028, up from $510.0 million today. This growth is supported by Murphy USA's strategic partnerships, expansion plans, and commitment to shareholder value.

In conclusion, Murphy USA's strategic partnership with Walmart, along with its expansion plans and commitment to shareholder value, will contribute to its long-term earnings growth and market presence. The company's ability to leverage its partnership with Walmart, maintain consistent fuel revenue, and invest in growth initiatives positions it well for future success. As an investor, I'm looking forward to the upcoming conference call to learn more about Murphy USA's performance and growth prospects.