On this page of StockholderLetter.com we present the latest annual shareholder letter from Murphy USA Inc. — ticker symbol MUSA. Reading current and past MUSA letters to shareholders can bring important insights into the investment thesis.

 •  3/18/2025 Letter Continued (Full PDF)
 •  3/23/2023 MUSA Stockholder Letter
 •  3/28/2024 MUSA Stockholder Letter
 •  More "Department Stores" Category Stockholder Letters
 •  MUSA Benford's Law Stock Score = 68

MUSA Shareholder/Stockholder Letter Transcript:

MAKING THE BUSINESS BETTER
2024 ANNUAL REPORT AND 2025 PROXY STATEMENT

FINANCIAL
HIGHLIGHTS
2020
2021
2022
2023
2024
3.901
4.352
4.752
4.804
4.821
Retail fuel gallons sold (per store month)
219,520
229,404
244,582
242,026
240,632
Total fuel contribution (cents per gallon)
25.2
26.3
34.3
31.4
30.5
$ 2.955
$ 25,850
15.6%
$ 10,159
22.0%
$ 3.678
$ 35,607
19.1%
$ 19,218
28.5%
$ 3.903
$ 38,025
19.7%
$ 21,055
29.4%
$ 4.089
$ 39,124
19.7%
$ 21,856
29.6%
$ 4.215
$ 40,407
19.8%
$ 22,027
29.7%
$ 386.1
$ 722.7
$ 163.6
$ 227.1
$ 951.2
$ 3,566.0
$ 130.87
$ 396.9
$ 828.0
$ 256.4
$ 277.5
$ 1,800.1
$ 4,968.1
$ 199.24
$ 672.9
$ 1,190.9
60.5
$ 305.8
$ 1,791.9
$ 6,080.0
$ 279.54
$ 556.8
$ 1,058.5
$ 117.8
$ 344.1
$ 1,784.7
$ 7,429.8
$ 356.56
$ 502.5
$ 1,006.8
$ 47.0
$ 503.0
$ 1,832.7
$ 10,043.2
$ 501.75
FUEL METRICS
Total retail gallons sold (in billions)
MERCHANDISE METRICS
Total merchandise sales ($ billions)
Total merchandise margin dollars (per store month)
Merchandise unit margins (%)
Non-nicotine margin dollars (per store month)
Total non-nicotine unit margins (%)
FINANCIAL METRICS ($ MILLIONS)
Net income from continuing operations
Adjusted EBITDA1
Cash and cash equivalents
Capital spending
Long-term debt
Market capitalization
Ending share price ($ per share)
Murphy
USAUSA
Stock
Performance
Murphy
Stock
Performance
Total
Shareholder
Return,
Annualized
Total
Shareholder
Return,
Annualized
Indexed
from from
December
31, 2019
to December
31, 2024
Indexed
December
31, 2019
to December
31, 2024
Based
on Ending
PricePrice
of Each
Period
Based
on Ending
of Each
Period
FromFrom
December
31, 2021
to December
31, 2024
December
31, 2021
to December
31, 2024
Based
on 10-Day
Average
PricePrice
at End
Each
Period
Based
on 10-Day
Average
at of
End
of Each
Period
MURPHY
USA INC.
SelectSelect
IndexIndex
MURPHY
USA INC.S&P 500
S&P INDEX
500 INDEX S&P Retail
S&P Retail
45 45
40 40
450 450
439 439
Index (100 as of 12/2018)
400 400
38.8%
38.8%
25 25
300 300
20 20
Please refer to the reconciliation in Appendix A of the Notice of
2024 Annual Meeting of Stockholders and Proxy Statement included herein.
5
5
0
0
8.1%8.1%
-1.4%
-1.4%
-5 -5
S&P 500 INDEX
12/31/2024
12/31/2024
12/31/2023
12/31/2023
12/31/2022
12/31/2022
12/31/2021
12/31/2021
12/31/2020
12/31/2020
12/31/2019
100 100
50 50
S&P RETAIL SELECT
INDUSTRY INDEX
S&P RETAIL SELECT
INDUSTRY INDEX
10 10
S&P 500 INDEX
150 150
15 15
182 182
MURPHY USA INC.
200 200
188 188
MURPHY USA INC.
250 250
1
35 35
30 30
350 350
12/31/2019
Index (100 as of 12/2018)
500 500

A N N U A L R E P O R T 20 24
PA G E 3
Letter To Shareholders - Making the Business Better
I had the chance to engage with several
long-term shareholders in the closing
weeks of 2024 who asked me to remind
them what the primary success factors
were that got the company to where it
is today, and how do we continue this
remarkable performance. Reflecting
on my long-tenured agenda and
overarching strategy that helped develop
the people, processes and technology
to transform the company over the past
decade, three themes stood out:
   We have made the business better
   We can win in any environment
   Balanced Capital Allocation
   maximizes returns to shareholders
Making the Business Better: Dating
back to our 2013 spin-off, we have
successfully transformed MUSA   s business
through a series of multi-part campaigns
that have established our low-cost
structure, endeared customer loyalty, and
enhanced our overall competitiveness.
By clearly defining our opportunities
and objectives at spin, we preemptively
improved efficiency through a series
of initiatives to significantly reduce our
store labor expense and merchandise
supply costs, both of which lowered our
fuel breakeven cost and improved the
competitive moat around our everyday
low-price advantaged business model.
Through our recent Digital Transformation
campaign, we have created a set of
digital capabilities that help us better
understand our customer and strengthens
our already advantaged business
model with more speed, insights and
agility. These capabilities help to inform
our pricing and assortment decisions,
deliver more effective promotions, and
create more value for our customer.
The unequivocal success of Murphy
Drive Rewards has greatly influenced
the design, architecture, and roll out
of the new and improved QuickChek
rewards program in late 2024, a
milestone we are very excited about.
Over the past few years, we executed a
fulsome and ambitious agenda grounded
in our commitment to improving capital
returns through growth, innovation and
productivity. We have invested in our
new store pipeline in preparation for
accelerating our new store growth with a
goal of putting up to 50 highly productive
2,800 square foot stores into service in
2025. In addition to new store growth,
we are razing and rebuilding our older
kiosks, transforming them into 1,400
square foot stores and remodeling our
larger format stores. Collectively these
efforts are improving our customer
reach, expanding our offer and keeping
our network fresh and attractive.
Today, we are allocating resources
against a new set of initiatives that
can further enhance the potential
of our business, including our Store
Productivity Excellence campaign
which will significantly improve
operational productivity across
our large network of stores.
Winning in Any Environment: What
our industry has witnessed in the past
five years is unprecedented: a 50%
demand shock; a doubling of industry
fuel margins; record price volatility; the
final disintegration of the refiner/marketer
model; rampant inflation; and more.
Most important beyond the significance
of the one-time structural shift in industry
margins is the marginal retailer   s ability
to pass through the impact of higher
volatility and underlying cost pressures.
This appears to be an enduring dynamic
that should accrue to MUSA   s benefit
over time, even if disguised short-term
by other temporal shifts in margins.
In that setting, MUSA has demonstrated
its ability to win across the spectrum of
dynamics we have witnessed. Our EDLP
positioning generates significant volume
gains in high price settings. Our low cost
of product ensures ratable, secure supply
in disruptive settings. Our improved retail
pricing capabilities have adapted to the
ever-changing competitive landscape.
Our enhanced loyalty efforts create
additional value when prices run up and
greater stickiness when prices fall. To you
the shareholder, it should be clear that
our Make the Business Better initiatives
ensure we retain most of the penny profit
we earn from higher fuel margins. Should
margins temporally dip like we witnessed
in 2024 when the refined product
supply/demand balance was longer
than expected, we are able to maintain
our competitive positioning and EDLP
value proposition with the confidence
that the longer-term sustainable
equilibrium will ultimately persist.
Balancing Capital Allocation: While we
have witnessed unprecedented change in
our industry, the resilience of our business
model provides continued confidence
and commitment to our disciplined,
balanced capital allocation strategy.
This strategy utilizes our significant cash
flow generation to both grow our network
organically at high returns and maintain
our share repurchase commitments with
free cash flow. Thus, the key imperative for
management becomes simple: focus on
what we can control, which is, in short, to
make the business better. The rest should
take care of itself, as we have successfully
demonstrated since our 2013 spin-off.
As shareholders, you can expect
continuity in our strategy, our leadership
philosophy, and our relentless commitment
to making the business better. We hope
we have earned your trust and can rest
assured that the Murphy USA leadership
team is fully committed, internally aligned,
and laser-focused, now and in the
future, to win with all its stakeholders.
R. Andrew Clyde
President and Chief Executive Officer


A N N U A L R E P O R T 20 24
PA G E 5
1.
STRATEGY
GROW ORGANICALLY
Growth of Murphy Retail Stores
Murphy USA and QuickChek Locations
MURPHY USA
QUICKCHEK
1,503
2020
1,679
1,712
1,733
1,757
158
157
156
156
1,521
1,555
1,577
1,601
2021
2022
2023
2024
Our commitment to organic growth continues
to enhance the quality and attractiveness
of our network, improve the customer
experience, further diversify our merchandise
mix, and provide both our customers and
our shareholders with more value.
In 2024, we added 32 new stores, including
4 QuickChek locations, growing the network
to 1,757 stores. We also completed 47
raze and rebuilds, which transform a kiosk
into a higher-performing 1,400 square foot
store. New stores remain the primary driver
of our growth strategy, bolstered by a highquality, multi-year development pipeline.
We plan to build up to 50 new stores in 2025.
Innovation is central to our future store
development strategy. In 2024 we renovated
many of our larger-format 2,800 square
foot stores to optimize selling space and
provide customers with a better shopping
experience. Additionally, we opened the
   Store of Tomorrow    in North Myrtle Beach, SC,
featuring an updated look and feel with a bold
color scheme, branding, and new features such
as self-checkout. While only a prototype, this
project will help influence and optimize our
new store investments in the years ahead.
North Myrtle Beach, SC
Raze & Rebuilds by Year
33
2020
27
2021
47
32
31
2022
2023
2024



 3/18/2025 Letter Continued (Full PDF)