Murphy Usa Insider Sold Shares Worth $988,767, According to a Recent SEC Filing

Motor fuel retailer Murphy USA Inc. MUSA announced third-quarter 2024 earnings per share of $7.20, which beat the Zacks Consensus Estimate of $6.64. The outperformance primarily reflects higher fuel margins.

However, the company’s bottom line fell from the year-ago adjusted profit of $7.69 due to tepid petroleum product sales.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Murphy USA’s operating revenues of $5.2 billion fell 9.6% year over year and missed the consensus mark by $362 million.

Revenues from petroleum product sales came in at $4.1 billion, well below our estimate of $4.5 billion and down 11.5% from the third quarter of 2023. On the other hand, merchandise sales, at $1.1 billion, rose 2.5% year over year but were $34.7 million below our estimate.

Murphy USA Inc. Price, Consensus and EPS Surprise

Murphy USA Inc. price-consensus-eps-surprise-chart | Murphy USA Inc. Quote

Key Takeaways

MUSA’s total fuel contribution fell 3.5% year over year to $404.2 million, as lower RIN contribution offset margin expansion. Moreover, total fuel contribution (including retail fuel margin plus product supply and wholesale results) came in at 32.6 cents per gallon, 5.5% lower than the third quarter of 2023.

Retail fuel contribution increased 13.5% year over year to $395.7 million as margins widened to 31.9 cents per gallon from 28.7 cents in the corresponding period of 2023. Retail gallons edged up 2% from the year-ago period to 1,239.3 million in the quarter under review and beat our estimate of 1,213.8 million. Volumes on an SSS basis (or fuel gallons per store) improved 1.4% from the third quarter of 2023 to 245.2 thousand.

Contribution from Merchandise increased 2.4% to $216.8 million on higher sales, which offset a marginal fall in unit margins from 20.1% a year ago to 20% in the third quarter of 2024. On an SSS basis, total merchandise contribution was up 1.2% year over year, primarily on the back of 6.1% higher nicotine margins. Meanwhile, merchandise sales increased 1.6% on an SSS basis, again due to an increase in nicotine sales.

The Zacks Rank #3 (Hold) company’s monthly fuel gallons rose 1.1% from the prior-year period, while merchandise sales decreased 2% on an average per store monthly basis.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Balance Sheet

As of Sept. 30, Murphy USA — which opened four new retail locations in the quarter to take its store count to 1,740 — had cash and cash equivalents of $52.5 million and long-term debt (including lease obligations) of $1.8 billion, with a debt-to-capitalization of 68.7%.

During the quarter, MUSA bought back shares worth $126.4 million.

Some Key Refining Earnings

While we have discussed MUSA’s third-quarter results in detail, let’s see how some other refining companies have fared this earnings season.

Valero Energy VLO reported third-quarter 2024 adjusted earnings of $1.14 per share, which missed the Zacks Consensus Estimate of $1.29 due to the significant decline in refining throughput volumes. Adjusted operating income in the Refining segment totaled $565 million, down from $3.4 billion in the year-ago quarter. The figure also missed our estimate of $1.8 billion.

Valero’s total cost of sales decreased to $32.1 billion from the year-ago figure of $34.6 billion. The figure is also below our estimate of $33 billion, primarily due to lower cost of materials and operating expenses. The third-quarter capital investment totaled $429 million, of which $338 million was allotted for sustaining the business.

Another refining giant Phillips 66 PSX reported third-quarter 2024 adjusted earnings of $2.04 per share, which beat the Zacks Consensus Estimate of $1.63. However, the bottom line was lower than the year-ago quarter’s level of $4.63. The better-than-expected quarterly results can be primarily attributed to cost reduction and the achievement of Midstream synergy targets. However, this was partially offset by reduced contributions from PSX’s Refining segment due to a decline in realized margins.

Phillips 66 generated $1.13 billion of net cash from operations for the reported quarter, significantly lower than $2.69 billion a year ago. The company’s capital expenditure and investments totaled $358 million. It paid out dividends of $477 million in the third quarter. As of Sept. 30, 2024, cash and cash equivalents were $1.6 billion. Total debt was $19.9 billion, reflecting a debt-to-capitalization of 39.6%.

Finally, we have Marathon Petroleum’s MPC third-quarter third-quarter adjusted earnings per share of $1.87, which comfortably beat the Zacks Consensus Estimate of 97 cents. The outperformance primarily reflects the stronger-than-expected performance of its Refining & Marketing segment. Operating income of the segment totaled $298 billion, surpassing the consensus mark, calling for a loss of $64 million on the back of strong product sales and throughput.

Marathon Petroleum’s total refined product sales volumes were 3,685 thousand barrels per day (mbpd), up from 3,596 mbpd in the year-ago quarter. Throughput rose marginally from 2,959 mbpd in the year-ago quarter to 2,991 mbpd and outperformed the Zacks Consensus Estimate of 2,852 mbpd. MPC’s operating costs per barrel increased from $5.14 in the year-ago quarter to $5.30.

Zacks Investment Research

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