Murphy USA Inc. (MUSA)

Murphy USA Inc. is a Delaware company incorporated in 2013 that holds the former U.S. retail marketing business of Murphy Oil Corporation, from which it was spun off. It markets retail motor fuel and convenience merchandise through a network of company stores, using a low-price, high-volume model with low-cost small store formats and kiosks as well as larger stores with broader food, beverage and merchandise offerings. In January 2021 it acquired Quick Chek Corporation ("QuickChek"), a privately held convenience store chain. Its common stock trades on the NYSE under the symbol "MUSA".

The company reports one segment, Marketing, which covers its retail stores plus its product supply and wholesale assets. At December 31, 2023 it operated 1,733 stores in 27 states: 1,577 Murphy USA and Murphy Express stores, which are being transitioned to the Murphy USA name, and 156 QuickChek stores in New Jersey and New York. The stores sell fuel (about 4.8 billion gallons in 2023) along with snacks, beverages, tobacco and non-food merchandise. QuickChek offers a greater food and beverage selection, self-service checkouts and support for third-party delivery. Loyalty programs include Murphy Drive Rewards and QuickChek Rewards. The company also sells fuel to unbranded wholesale customers through company-owned and third-party terminals and pipeline positions. Growth plans center on new-to-industry stores and raze-and-rebuilds, with Murphy stores of 1,400 or 2,800 square feet and QuickChek stores averaging 5,000 to 7,000 square feet.

Its customers are mainly value-conscious retail consumers, and most Murphy stores sit near Walmart stores or in preferred markets across the Southeast, Southwest and Midwest. Texas, Florida, New Jersey and Georgia have the most stores. The company works with Walmart on fuel discount programs such as Walmart+. It describes the U.S. retail fuel and convenience industry as large, competitive and highly fragmented. Sales and volumes are typically higher in the second and third quarters because of summer driving.

For fuel supply, the company buys from major and large oil companies, independent refiners and other marketers at prices reset daily, and delivers by truckload. It distributes through a few wholly owned terminals, about half supplied by marine transport and half by pipeline, and many third-party terminals. It does not produce or refine petroleum products. Core-Mark supplied more than 77% of merchandise purchases in 2023 under a five-year agreement renewed in January 2021. About 75% of stores are on company-owned land, with the rest leased, including sites leased from Walmart under a master lease. Properties bought from Walmart are subject to restrictions and rights of first refusal or offer. Competitors include other fuel and convenience chains, supermarkets, discount clubs, mass merchants and integrated oil companies, with competition based on price, location, convenience and service. The company had about 15,600 employees and is headquartered at 200 Peach Street, El Dorado, Arkansas.