Murphy USA (MUSA) 47th Annual Raymond James Institutional Investor Conference summary

Industry Overview and Market Positioning

• Operates as the fourth largest convenience store retailer in a fragmented U.S. market of 152,000 stores, serving up to 160 million daily customers and operating over 1,800 locations across nearly 27 states.

• The market is highly fragmented, with 63% of stores operated by independents, offering significant consolidation and growth opportunities.

• Population and store growth are shifting to the Southeast and Southwest, aligning with expansion strategy.

• High trip frequency and proximity drive recurring customer visits, with two-thirds visiting weekly.

• Focus on non-discretionary products builds customer loyalty and resilience.

Strategic Pillars and Growth Model

• Strategic framework centers on five pillars: store growth, merchandise mix diversification, cost discipline, leveraging market volatility, and long-term investment.

• Accelerating new store openings post-COVID, targeting 50 new stores per year and 34% square footage growth, with store count projected to reach ~2,050 by 2030.

• New stores and formats are outperforming chain averages in merchandise and fuel contribution, meeting or exceeding return expectations.

• Merchandise margin targeted to grow 3%-4% annually, with larger stores focusing on higher-margin products and evolving mix toward food, beverage, and nicotine categories.

• Store base transformation and accelerated new store program are driving improved performance and EBITDA growth.

Operational Efficiency and Technology

• Digital transformation and demand forecasting optimize labor and store operations, keeping labor cost growth low.

• Store maintenance costs reduced through proactive lifecycle management and self-maintenance initiatives, saving millions.

• Home office restructuring and technology investments are driving incremental efficiencies and cost leadership.

• Operating expenses are rising due to new and larger stores, with 2025 OpEx up 5.8% year-over-year.

• Shrink reduced by $4 million through better inventory management.