Murphy USA (MUSA) Raymond James & Associates’ 46th Annual Institutional Investors Conference 2025 summary

Strategic Overview and Business Model

• Focuses on value-conscious, paycheck-to-paycheck consumers with an everyday low-price model, leveraging digital transformation and a strong Walmart partnership.

• Five core strategies since 2013: organic growth, merchandise diversification, cost leadership, long-term investment, and minimal reliance on M&A.

• Loyalty program (Murphy Drive Rewards) covers 80% of tobacco transactions, with over 10 million members, providing deep customer insights.

• Strategic acquisition of QuickChek in 2021 expanded food and beverage capabilities, with cross-application of best practices.

• Operates over 1,760 locations across 27 states, serving more than 2 million customers daily, with transformational investments and new store formats driving productivity.

Operational Performance and Market Dynamics

• Fuel volumes fully recovered post-COVID, outperforming marginal retailers who remain down 20%.

• Industry fuel margins have doubled, benefiting from marginal players' inability to maintain profitability.

• New store formats and remodels outperform legacy kiosks in both fuel and merchandise sales.

• Store productivity initiatives target incremental improvements at every location, even among profitable stores.

• Demonstrated resilience through industry disruptions such as COVID, fuel price volatility, and inflation, maintaining or growing market share with an EDLP pricing strategy.

Financial Results and Shareholder Returns

• Adjusted EBITDA reached $1,006.8 million in 2024, with a 2025 mid-point guidance of $1,060 million and a 2028 target of $1.3 billion.

• Cumulative shareholder return as of 12/31/2024 was 1,222%, significantly outperforming major indices.

• Nearly 60% of shares have been repurchased since the spin, with nearly $7 billion allocated to capital returns and M&A.

• 2028 targets include maintaining a 10-12x EBITDA multiple and reducing shares outstanding to approximately 17 million.

• Buybacks are opportunistic, especially during periods of exceptional free cash flow, such as high fuel margin years.