Murphy USA Inc.
For the period ended Jun 30, 2025. Filed Jul 31, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 31, 2025
MUSA$521.89+1.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0001573516-25-000038
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-31.
0001573516-25-000049
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 109 previous paragraphs and 132 current paragraphs.
68 unchanged; 40 reworded; 19 added; 1 removed; 0 previous and 5 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
For the six months ended June 30, 2025, the Company reported net income of $198.8 million, or $9.95 per diluted share, on revenue of $9.5 billion. Net income for the same period in 2024 was $210.8 million, or $10.02 per diluted share, on $10.3 billion of revenue. For the year-to-date period, the Company generated higher total fuel contribution and higher overall merchandise contribution compared to the same period in 2024, while also benefiting from lower general and administrative expenses, lower income tax expense and lower payment fees. Increases in depreciation and amortization, higher store operating expenses and higher interest expense more than offset these benefits resulting in lower net income for the 2025 year-to-date period.
Current report
Year-to-date revenues decreased $0.8 billion, or 7.4%, compared to the same period in 2024. The decrease in revenues was due to a 9.4% decrease in the average retail fuel sales prices and a 1.0% decrease in retail fuel sales volumes, which was partially offset by a 0.5% increase in merchandise sales revenue.
Current report
Year-to-date cost of sales decreased $0.8 billion, or 8.4%, compared to the same period in 2024. In the current-year period, the lower costs were primarily due to lower fuel cost and lower fuel volumes sold, partially offset by higher merchandise costs.
Current report
Year-to-date store and other operating expenses increased $19.3 million, or 3.7%, compared to the same period in 2024, primarily due to increases in net new store operating expenses combined with higher employee related expenses and maintenance costs at existing stores, partially offset by lower payment fees.
Current report
SG&A expenses for the first six months of 2025 decreased $10.2 million, or 8.4%, compared to the first six months of 2024. The decrease in SG&A costs is primarily due to lower professional fees, lower employee related costs and decreased incentive costs versus the same period of 2024.
Current report
•Lower fuel sales volumes
Current report
•Higher depreciation and amortization expenses
Current report
•Higher total fuel contribution
Current report
•Higher merchandise contribution
Current report
•Lower SG&A expenses
Current report
•Lower income tax expense
Current report
Net income in the Marketing segment for the six months ended June 30, 2025 decreased $2.3 million compared to the six months ended June 30, 2024. The decrease was primarily due to increased store operating expenses, increased depreciation and amortization and lower fuel sales volumes, , which were partially offset by higher total fuel contribution, higher overall merchandise contributions, lower SG&A expenses and lower income tax expense.
Current report
Total fuel contribution for the six-month period ended June 30, 2025 was $680.3 million, an increase of $3.9 million, or 0.6%, compared to the first six months of 2024. This increase was primarily due to higher retail fuel contribution and lower contribution from PS&W margins, partially offset by lower fuel volumes sold in the period when compared to the first six months of 2024. Retail fuel margins on a cpg basis increased 3.1%, to 26.6 cpg, for the six-month period ended June 30, 2025, compared to 25.8 cpg in the same period of 2024. Total retail fuel sales volumes decreased 1.0%, and volumes on an SSS basis decreased 3.7% in the six-month period ended June 30, 2025 when compared to the same six-month period of 2024. Total product supply and wholesale contribution dollars, including RINs, decreased $7.7 million compared to the first six months of 2024, primarily due to timing and pricing impacts related to market conditions.
Current report
Total merchandise sales increased 0.5% to $2.1 billion in the six months ended June 30, 2025 compared to $2.1 billion in the first six months of 2024. Year-to-date 2025 total merchandise contribution increased 1.6% compared to the same period of 2024, primarily due to favorable sales mix and higher retail prices, combined with increased store count compared to the prior year period. Total year-to-date SSS merchandise contribution dollars were flat compared to the same period of 2024 with an increase of 1.8% in nicotine products being offset by a 1.6% decrease in non-nicotine products.
Current report
Store and other operating expenses increased $19.3 million, or 3.7%, in the current year compared to the same six-month period of 2024, primarily due to increases in net new store operating expenses combined with higher employee related expenses and maintenance costs at existing stores. On an APSM basis, expenses applicable to store OPEX excluding payment fees and rent increased 3.5%, primarily due to employee related expenses and maintenance costs.
Current report
SG&A expenses decreased $10.2 million in 2025 compared to the same six-month period of 2024 due primarily to lower professional fees, lower employee related costs and decreased incentive costs.
Current report
Depreciation and amortization expense increased $10.5 million, or 9.5%, in the first six months of 2025 due to new larger store formats for Murphy branded stores combined with raze-and-rebuild activities.
Current report
Loss from continuing operations for Corporate and other assets was $48.2 million for the six months ended June 30, 2025, compared to a loss of $38.5 million in the same period of 2024. The year-over-year increase was primarily due to a $5.7 million increase in depreciation and amortization expense, a $3.7 million increase in net interest expense and a $2.1 million reduction in investment income, partially offset by a $2.0 million increase in the income tax benefit period over period.
Current report
Pursuant to the credit agreement's covenant limiting certain restricted payments, certain payments in respect of our equity interests, including dividends, when the total leverage ratio, calculated on a pro forma basis, is greater than 3.0 to 1.0 could be limited. At June 30, 2025, our total leverage ratio was 2.04 to 1.0 which meant our ability at that date to make restricted payments was not limited. If our total leverage ratio, on a pro forma basis, exceeds 3.0 to 1.0, any restricted payments made following that time until the ratio is once again, on a pro forma basis, below 3.0 to 1.0 would be limited by the covenant, which contains certain exceptions, including an ability to make restricted payments in cash in an aggregate amount not to exceed the greater of $400.0 million or 15.0% of consolidated net tangible assets over the life of the credit agreement.
Removed paragraphs (1)
Previous report
On May 1, 2025, the Board of Directors declared a quarterly cash dividend of $0.50 per common share, or $2.00 per share on an annualized basis. The dividend is payable on June 2, 2025, to shareholders of record as of May 12, 2025.
Reworded paragraphs (40)
Previous wording
•Results of Operations— This section provides an analysis of our results of operations, including the results of our operating segment for the three months ended March 31, 2025 and 2024.
Current wording
•Results of Operations— This section provides an analysis of our results of operations, including the results of our operating segment for the three and six months ended June 30, 2025 and 2024.
Previous wording
•Capital Resources and Liquidity— This section provides a discussion of our financial condition and cash flows as of and for the three months ended March 31, 2025 and 2024. It also includes a discussion of our capital structure and available sources of liquidity.
Current wording
•Capital Resources and Liquidity— This section provides a discussion of our financial condition and cash flows as of and for the three and six months ended June 30, 2025 and 2024. It also includes a discussion of our capital structure and available sources of liquidity.
Previous wording
The Company owns and operates a chain of retail stores that market gasoline and other merchandise under the brand names of Murphy USA®and Murphy Express, most of which are located in close proximity to Walmart stores, principally in the Southeast, Midwest and Southwest areas of the United States. We also have a mix of convenience stores and retail gasoline stores located in New Jersey and New York that operate under the QuickChek® brand, comprising our Northeast region. At March 31, 2025, we had a total of 1,761 Company stores in 27 states, of which 1,607 were Murphy branded and 154 were under the QuickChek brand. We also market petroleum products to unbranded wholesale customers through a mixture of Company-owned and third-party terminals.
Current wording
The Company owns and operates a chain of retail stores that market gasoline and other merchandise under the brand names of Murphy USA®and Murphy Express, most of which are located in close proximity to Walmart stores, principally in the Southeast, Midwest and Southwest areas of the United States. We also have a mix of convenience stores and retail gasoline stores located in New Jersey and New York that operate under the QuickChek® brand, comprising our Northeast region. At June 30, 2025, we had a total of 1,766 Company stores in 27 states, of which 1,612 were Murphy branded and 154 were under the QuickChek brand. We also market petroleum products to unbranded wholesale customers through a mixture of Company-owned and third-party terminals.
Previous wording
the QuickChek results cover the period December 28, 2024 to March 28, 2025. For Q1 2024, the QuickChek results cover the period December 30, 2023 to March 29, 2024. The difference in the timing of the period ends is immaterial to the overall consolidated results.
Current wording
the QuickChek results cover the period March 29, 2025 to June 27, 2025, and the 2025 year-to-date period began December 28, 2024. For Q2 2024, the QuickChek results cover the period March 30, 2024 to June 28, 2024, and the 2024 year-to-date period began December 30, 2023. The difference in the timing of the period ends is immaterial to the overall consolidated results.
Previous wording
The cost of our main fuel products, gasoline and diesel, is greatly impacted by the cost of crude oil in the United States. Historically, a rising price environment for crude oil increases the Company’s cost for wholesale fuel products purchased, which in turn increases retail fuel prices. Rising prices can cause consumers to reduce discretionary fuel consumption, however our low-price model can also serve as a hedge to draw new customers which can offset the potential loss of discretionary volumes. In Q1 2025, crude oil prices experienced moderate volatility with prices ranging from $66 per barrel to $81 per barrel with a average price of $72 per barrel in Q1 2025, compared to an average price of $78 per barrel in Q1 2024. Total fuel contribution (retail fuel margin plus product supply and wholesale ("PS&W") results which include Renewable Identification Numbers ("RINs")) was 25.4 cents per gallon ("cpg") in Q1 2025, compared to 24.8 cpg in Q1 2024. Retail fuel margin dollars increased 7.1% in the current quarter while retail fuel volumes decreased 1.9% when compared to Q1 2024.
Current wording
The cost of our main fuel products, gasoline and diesel, is greatly impacted by the cost of crude oil in the United States. Historically, a rising price environment for crude oil increases the Company’s cost for wholesale fuel products purchased, which in turn increases retail fuel prices. Rising prices can cause consumers to reduce discretionary fuel consumption, however our low-price model can also serve as a hedge to draw new customers which can offset the potential loss of discretionary volumes. In Q2 2025, crude oil prices experienced moderate volatility with prices ranging from $59 per barrel to $76 per barrel with a average price of $65 per barrel in Q2 2025, compared to an average price of $82 per barrel in Q2 2024. Total fuel contribution (retail fuel margin plus product supply and wholesale ("PS&W") results which include Renewable Identification Numbers ("RINs")) was 32.0 cents per gallon ("cpg") in Q2 2025, compared to 31.7 cpg in Q2 2024. Retail fuel margin dollars decreased 1.7% in the current quarter and retail fuel volumes decreased 0.2% when compared to Q2 2024.
Previous wording
Our revenues are impacted by the ability to leverage our diverse supply infrastructure in pursuit of obtaining the lowest cost of fuel supply available; for example, activities such as blending bulk fuel with renewable fuels (ethanol and bio-diesel) to capture and subsequently sell RINs. Under the Energy Policy Act of 2005, the Environmental Protection Agency (“EPA”) is authorized to set annual quotas establishing the percentage of motor fuels consumed in the United States that must be attributable to renewable fuels. Obligated parties are required to demonstrate that they have met any applicable quotas by submitting a certain number of RINs to the EPA. RINs in excess of the set quota can be sold in a market for RINs at then-prevailing prices. The market price for RINs fluctuates based on a variety of factors, including but not limited to governmental and regulatory action. There are other market related factors that can impact the revenue received for RINs on a company-wide basis either favorably or unfavorably. The Renewable Fuel Standard ("RFS") program continues to be unpredictable and prices received by us for ethanol RINs averaged $0.74 per RIN in Q1 2025 compared to $0.57 per RIN in Q1 2024. Our business model does not depend on our ability to generate revenues from RINs, and we have historically observed that changes in revenue are typically coupled with offsetting changes in cost of goods that minimizes the majority of any revenue movement. Revenue from the sales of RINs is included in “Other operating revenues” in the Consolidated Statements of Income.
Current wording
Our revenues are impacted by the ability to leverage our diverse supply infrastructure in pursuit of obtaining the lowest cost of fuel supply available; for example, activities such as blending bulk fuel with renewable fuels (ethanol and bio-diesel) to capture and subsequently sell RINs. Under the Energy Policy Act of 2005, the Environmental Protection Agency (“EPA”) is authorized to set annual quotas establishing the percentage of motor fuels consumed in the United States that must be attributable to renewable fuels. Obligated parties are required to demonstrate that they have met any applicable quotas by submitting a certain number of RINs to the EPA. RINs in excess of the set quota can be sold in a market for RINs at then-prevailing prices. The market price for RINs fluctuates based on a variety of factors, including but not limited to governmental and regulatory action. There are other market related factors that can impact the revenue received for RINs on a company-wide basis either favorably or unfavorably. The Renewable Fuel Standard ("RFS") program continues to be unpredictable and prices received by us for ethanol RINs averaged $1.01 per RIN in Q2 2025 compared to $0.52 per RIN in Q2 2024. Our business model does not depend on our ability to generate revenues from RINs, and we have historically observed that changes in revenue are typically coupled with offsetting changes in cost of goods that minimizes the majority of any revenue movement. Revenue from the sales of RINs is included in “Other operating revenues” in the Consolidated Statements of Income.
Previous wording
As of March 31, 2025, we had $1.3 billion of Senior Notes, $200.0 million outstanding under our revolving credit facility and a $385 million term loan outstanding. We believe that we will generate sufficient cash from operations to fund our ongoing operating requirements and service our debt obligations. We had additional available capacity under our revolving credit facility, which, following a refinancing effective as of April 7, 2025, provides for up to $750 million of borrowings. We expect to use the credit facilities to provide us with available financing to meet any short-term ongoing cash needs in excess of internally generated cash flows. To the extent necessary, we will borrow under these facilities to fund our ongoing operating requirements and other corporate initiatives. There can be no assurances, however, that we will generate sufficient cash from operations or be able to draw on the credit facilities, obtain commitments for our incremental facility, or obtain and draw upon other credit facilities. For additional information, see Significant Sources of Capital in the Capital Resources and Liquidity section.
Current wording
As of June 30, 2025, we had $1.3 billion of Senior Notes, $88.0 million outstanding under our revolving credit facility and a $600 million term loan outstanding. We believe that we will generate sufficient cash from operations to fund our ongoing operating requirements and service our debt obligations. We had additional available capacity under our revolving credit facility, which provides for up to $750 million of borrowings. We expect to use the credit facilities to provide us with available financing to meet any short-term ongoing cash needs in excess of internally generated cash flows. To the extent necessary, we will borrow under these facilities to fund our ongoing operating requirements and other corporate initiatives. There can be no assurances, however, that we will generate sufficient cash from operations or be able to draw on the credit facilities, obtain commitments for our incremental facility, or obtain and draw upon other credit facilities. For additional information, see Significant Sources of Capital in the Capital Resources and Liquidity section.
Previous wording
We currently estimate our ongoing effective tax rate to be between 24% and 26% for the remainder of the year.
Current wording
We currently estimate our ongoing effective tax rate to be between 23% and 25% for the remainder of the year. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law, which includes significant changes to federal tax law and other regulatory provisions. The Company is currently evaluating OBBBA; however, it is not expected to have a material impact on the Company's effective tax rate or consolidated financial statements.
Previous wording
Our business has inherent seasonality due to the concentration of our retail stores in certain geographic areas, as well as customer behaviors during different seasons. In general, sales volumes and operating incomes are typically highest in the second and third quarters during the summer-activity months and lowest during the winter months. As a result, operating results for the three months ended March 31, 2025, may not necessarily be indicative of the results that may be expected for the remainder of the year ending December 31, 2025.
Current wording
Our business has inherent seasonality due to the concentration of our retail stores in certain geographic areas, as well as customer behaviors during different seasons. In general, sales volumes and operating incomes are typically highest in the second and third quarters during the summer-activity months and lowest during the winter months. As a result, operating results for the three and six months ended June 30, 2025, may not necessarily be indicative of the results that may be expected for the remainder of the year ending December 31, 2025.
Previous wording
The Company has one operating segment which is Marketing. The Marketing segment includes our retail marketing stores and product supply and wholesale assets. For additional operating segment information, see Note 22 “Business Segments” in the audited combined financial statements for the year ended December 31, 2024 included with our Annual Report on Form 10-K and Note 16 “Business Segments” in the accompanying unaudited consolidated financial statements for the three months ended March 31, 2025.
Current wording
The Company has one operating segment which is Marketing. The Marketing segment includes our retail marketing stores and product supply and wholesale assets. For additional operating segment information, see Note 22 “Business Segments” in the audited combined financial statements for the year ended December 31, 2024 included with our Annual Report on Form 10-K and Note 16 “Business Segments” in the accompanying unaudited consolidated financial statements for the three and six months ended June 30, 2025.
Previous wording
For the three months ended March 31, 2025, the Company reported net income of $53.2 million, or $2.63 per diluted share, on revenue of $4.5 billion. Net income was $66.0 million for the same period in 2024, or $3.12 per diluted share, on $4.8 billion of revenue. In the current year quarter, the Company experienced higher total fuel contribution and higher overall merchandise contribution compared to the prior year period, coupled with lower general and administrative expenses and lower income taxes. These benefits were more than offset by higher store operating expenses, higher depreciation and amortization and higher interest expense, resulting in lower net income for Q1 2025 compared to Q1 2024.
Current wording
For the three months ended June 30, 2025, the Company reported net income of $145.6 million, or $7.36 per diluted share, on revenue of $5.0 billion. Net income was $144.8 million for the same period in 2024, or $6.92 per diluted share, on $5.5 billion of revenue. In the current year quarter, the Company experienced higher total fuel contribution and higher overall merchandise contribution compared to the prior year period, coupled with lower general and administrative expenses, lower payment fees and lower income taxes. These benefits were partially offset by higher depreciation and amortization, higher store operating expenses and higher interest expense period over period.
Previous wording
Revenues for Q1 2025 decreased $0.3 billion, or 6.6%, compared to the same quarter in 2024. The decrease in revenues was primarily due to 6.0% lower retail fuel sales prices and a decrease of 1.9% in fuel sales volumes.
Current wording
Revenues for Q2 2025 decreased $0.5 billion, or 8.2%, compared to the same quarter in 2024. The decrease in revenues was primarily due to a 12.2% reduction in the average retail fuel sales price during the quarter and a decrease of 0.2% in fuel sales volumes, which was partially offset by a 1.1% increase in merchandise sales revenue.
Previous wording
Cost of sales in Q1 2025 decreased $0.3 billion, or 7.4%, when compared to Q1 2024. In the current-year quarter, the decrease was primarily due to lower fuel cost, lower fuel volumes sold and lower merchandise costs.
Current wording
Cost of sales in Q2 2025 decreased $0.5 billion, or 9.3%, when compared to Q2 2024. In the current-year quarter, the decrease was primarily due to lower fuel cost and lower fuel volumes sold, partially offset by higher merchandise costs.
Previous wording
Store and other operating expenses increased $14.0 million, or 5.6%, in Q1 2025 from Q1 2024, primarily due to higher employee related expenses and maintenance costs at existing stores combined with increases from net new store operating expenses, partially offset by a reduction in payment fees.
Current wording
Store and other operating expenses increased $5.3 million, or 2.0%, in Q2 2025 compared to Q2 2024, primarily due to increases from net new store operating expenses combined with higher employee related expenses and maintenance costs at existing stores, partially offset by a reduction in payment fees.
Previous wording
Selling, general and administrative ("SG&A") expenses for Q1 2025 decreased $2.0 million, or 3.2%, compared to Q1 2024. The decrease in SG&A costs is primarily due to lower professional fees and employee related costs, partially offset by higher incentive costs in the current quarter.
Current wording
Selling, general and administrative ("SG&A") expenses for Q2 2025 decreased $8.2 million, or 13.9%, versus Q2 2024. The decrease in SG&A costs is primarily due to lower professional fees, decreased incentive costs and lower employee related costs in the current quarter.
Previous wording
Depreciation and amortization expense increased $9.5 million in Q1, or 16.2%, when compared to the same period of 2024, primarily due to the increased number of Murphy branded stores with larger formats, raze-and-rebuild activity in the quarter and strategic investments related to technology improvement initiatives in recent years.
Current wording
Depreciation and amortization expense increased $6.7 million in Q2, or 11.3%, when compared to the same period of 2024, primarily due to the increased number of Murphy branded stores with larger formats, raze-and-rebuild activity in the quarter and strategic investments related to technology improvement initiatives in recent years.
Previous wording
The effective income tax rate was approximately 14.1% for Q1 2025 compared to 19.4% in Q1 2024. The rate for the quarter is lower due to excess tax benefits related to share-based compensation and recognition of purchased Federal energy tax credits.
Current wording
The effective income tax rate was approximately 21.9% for the six months ended June 30, 2025 versus approximately 23.4% for the same period of 2024. The year-to-date rate is lower due to excess tax benefits related to share-based compensation and recognition of purchased Federal energy tax credits.
Previous wording
Marketing segment net income for the three months ended March 31, 2025 was lower compared to the same period in 2024 primarily due to:
Current wording
Marketing segment net income for the three months ended June 30, 2025 was higher compared to the same period in 2024 primarily due to:
Previous wording
The items below partially offset the decrease in net income in the current period:
Current wording
The items below partially offset the increase in net income in the current period:
Previous wording
Net income in the Marketing segment for Q1 2025 decreased $6.4 million, to $79.1 million when compared to the Q1 2024 period. Contributions from both fuel and merchandise were higher in the current quarter compared to the prior year period coupled with lower general and administrative expenses and lower income taxes. These benefits were more than offset by higher store operating expenses, higher depreciation and amortization and higher interest expense, resulting in lower net income in Q1 2025 compared to the Q1 2024 period.
Current wording
Net income in the Marketing segment for Q2 2025 increased $4.1 million, to $167.9 million when compared to the Q2 2024 period. Contributions from both fuel and merchandise were higher in the current quarter compared to the prior year period coupled with lower general and administrative expenses, lower payment fees and lower income taxes. These benefits were partially offset by higher depreciation and amortization, higher store operating expenses and higher interest expense, resulting in higher net income in Q2 2025 compared to the Q2 2024 period.
Previous wording
Total fuel contribution for Q1 2025, was $287.3 million, an increase of $1.2 million, or 0.4%, compared to Q1 2024. This increase was due to higher retail fuel contribution, which was partially offset by lower contribution from PS&W margins and lower fuel volumes sold in the period when compared to Q1 of 2024. Retail fuel margins on a cpg basis increased 9.2% in Q1 2025 to 23.7 cpg, compared to 21.7 cpg in the prior year period. Total retail fuel volumes decreased 1.9%, and fuel sales volumes on an SSS basis declined 4.2% in Q1 2025 when compared to Q1 2024. Total product supply and wholesale contribution dollars, including RINs, decreased $16.5 million in Q1 2025 when compared to Q1 2024, primarily due to timing and pricing impacts related to market conditions.
Current wording
Total fuel contribution for Q2 2025, was $393.0 million, an increase of $2.7 million, or 0.7%, compared to Q2 2024. This increase was due to higher retail fuel contribution and higher contribution from PS&W margins, which was partially offset by lower fuel volumes sold in the period when compared to Q2 of 2024. Retail fuel margins on a cpg basis decreased 1.7% in Q2 2025 to 29.2 cpg, compared to 29.7 cpg in the prior year period. Total retail fuel volumes decreased 0.2% and fuel sales volumes on an SSS basis declined 3.2% in Q2 2025 when compared to Q2 2024. Total product supply and wholesale contribution dollars, including RINs, increased $8.8 million in Q2 2025 when compared to Q2 2024, primarily due to timing of inventory movements and pricing impacts related to market conditions.
Previous wording
Total merchandise sales were $1.3 million lower in Q1 2025 vs Q1 2024, coming in at approximately $1.0 billion in both quarters. Total merchandise contribution in Q1 2025 improved 2.2% compared to Q1 2024, primarily due to favorable sales mix and higher retail prices, combined with increased store count year-over-year. Total SSS merchandise contribution dollars grew 1.0%, which included an increase of 2.8% in nicotine products, partially offset by a 0.6% decrease in non-nicotine products.
Current wording
Total merchandise sales were $12.0 million, or 1.1%, higher in Q2 2025 vs Q2 2024, coming in at approximately $1.1 billion in both quarters. Total merchandise contribution in Q2 2025 improved 1.0% compared to Q2 2024, primarily due to favorable sales mix and higher retail prices, combined with increased store count compared to the prior year period. Total SSS merchandise contribution dollars were lower by 0.9%, which included an increase of 0.9% in nicotine products, more than offset by a 2.4% decrease in non-nicotine products.
Previous wording
Store and other operating expenses increased $13.9 million in Q1 2025 compared to Q1 2024, primarily due to higher employee related expenses and maintenance costs at existing stores combined with net new store operating expenses, partially offset by a reduction in payment fees. On an APSM basis, expenses applicable to store OPEX excluding payment fees and rent were 5.7% higher, primarily attributable to increased employee related expenses and maintenance costs.
Current wording
Store and other operating expenses increased $5.4 million in Q2 2025 compared to Q2 2024, primarily due to increases in net new store operating expenses combined with higher employee related expenses and maintenance costs at existing stores, partially offset by a reduction in payment fees. On an APSM basis, expenses applicable to store OPEX excluding payment fees and rent were 1.7% higher, primarily attributable to increased employee related expenses.
Previous wording
SG&A expenses in Q1 2025 were $2.0 million lower compared to Q1 2024, due primarily to lower professional fees and employee related costs, partially offset by higher incentive costs in the current quarter.
Current wording
SG&A expenses in Q2 2025 were $8.2 million lower compared to Q2 2024, due primarily to lower professional fees, lower incentive costs and lower employee related costs in the current quarter.
Previous wording
Depreciation and amortization expense increased $6.6 million, or 12.0%, in Q1 2025 compared to Q1 2024 due to the increased number of larger format Murphy branded stores and raze-and-rebuild activity in the quarter.
Current wording
Depreciation and amortization expense increased $3.9 million, or 7.0%, in Q2 2025 compared to Q2 2024 due to the increased number of larger format Murphy branded stores and raze-and-rebuild activity in the quarter.
Previous wording
Loss from continuing operations for Corporate and other assets for Q1 2025 was $25.9 million, compared to a loss of $19.5 million in Q1 2024. The increase from the prior year quarter was primarily due to a $2.9 million increase in depreciation and amortization expense, a $1.3 million reduction in investment income, a $1.0 million reduction in other nonoperating income, a $0.6 million increase in net interest expense and a $0.5 million decrease in gain on sale of assets.
Current wording
Loss from continuing operations for Corporate and other assets for Q2 2025 was $22.3 million, compared to a loss of $19.0 million in Q2 2024. The increase from the prior year quarter was primarily due to a $3.1 million increase in net interest expense, a $2.8 million increase in depreciation and amortization expense and a $0.8 million reduction in investment income, partially offset by a $2.0 million increase in the income tax benefit, a $1.0 million increase in other nonoperating income and a $0.4 million increase in gain on sale of assets.
Previous wording
The following table sets forth the Company’s EBITDA and Adjusted EBITDA for the three months ended March 31, 2025 and 2024. EBITDA means net income (loss) plus net interest expense, plus income tax expense, depreciation and amortization, and Adjusted EBITDA adds back (i) other non-cash items (e.g., impairment of properties and accretion of asset retirement obligations) and (ii) other items that management does not consider to be meaningful in assessing our operating performance (e.g., (income) from discontinued operations, net settlement proceeds, (gain) loss on sale of assets, loss on early debt extinguishment, transaction and integration costs related to acquisitions, and other non-operating (income) expense). EBITDA and Adjusted EBITDA are not measures that are prepared in accordance with U.S. generally accepted accounting principles (GAAP).
Current wording
The following table sets forth the Company’s EBITDA and Adjusted EBITDA for the three and six months ended June 30, 2025 and 2024. EBITDA means net income (loss) plus net interest expense, plus income tax expense, depreciation and amortization, and Adjusted EBITDA adds back (i) other non-cash items (e.g., impairment of properties and accretion of asset retirement obligations) and (ii) other items that management does not consider to be meaningful in assessing our operating performance (e.g., (income) from discontinued operations, net settlement proceeds, (gain) loss on sale of assets, loss on early debt extinguishment, transaction and integration costs related to acquisitions, and other non-operating (income) expense). EBITDA and Adjusted EBITDA are not measures that are prepared in accordance with U.S. generally accepted accounting principles (GAAP).
Previous wording
As of March 31, 2025, we had $49.4 million of cash and cash equivalents. Our cash management policy provides that cash balances in excess of a certain threshold may be reinvested in certain types of low-risk investments. Following the refinancing effective as of April 7, 2025, we have a committed cash flow revolving credit facility providing for aggregate borrowings of $750 million, which can be utilized for working capital and other general corporate purposes, including supporting our operating model as described herein. As of March 31, 2025, there was $200.0 million of outstanding borrowings under our Revolving Facility reported in Long-term debt in the Consolidated Balance Sheet. The Revolving Facility had $56.0 million of outstanding borrowings at December 31, 2024.
Current wording
As of June 30, 2025, we had $54.1 million of cash and cash equivalents. Our cash management policy provides that cash balances in excess of a certain threshold may be reinvested in certain types of low-risk investments. Following the refinancing effective as of April 7, 2025, we have a committed cash flow revolving credit facility providing for aggregate borrowings of $750 million, which can be utilized for working capital and other general corporate purposes, including supporting our operating model as described herein. As of June 30, 2025, there was $88.0 million of outstanding borrowings under our Revolving Facility reported in Long-term debt in the Consolidated Balance Sheet. The Revolving Facility had $56.0 million of outstanding borrowings at December 31, 2024.
Previous wording
Net cash provided by operating activities was $128.5 million for the three months ended March 31, 2025 and was $136.0 million for the same period of 2024, a decrease of $7.5 million, or 5.5%. The decrease for the three months ended March 31, 2025 is mainly due to a decrease in net income of $12.8 million and a decrease in the amount of cash required from changes in noncash working capital of $3.9 million partially offset by increased depreciation of $9.5 million compared to the same period in 2024.
Current wording
Net cash provided by operating activities was $383.6 million for the six months ended June 30, 2025 and was $396.8 million for the same period of 2024, a decrease of $13.2 million, or 3.3%. The decrease for the six months ended June 30, 2025 is mainly due to a decrease in the amount of cash required from changes in noncash working capital of $18.7 million and a decrease in net income of $12.0 million, partially offset by increased depreciation of $16.2 million and higher deferred and noncurrent tax charges of $6.4 million compared to the same period in 2024.
Previous wording
For the three months ended March 31, 2025, operating cash provided by changes in non-cash operating working capital of $0.3 million was due to a decrease in inventory of $37.2 million due to lower retail prices and volumes, an increase in accounts payable and accrued liabilities of $2.9 million which was related to the timing of payments and a decrease in prepaid expenses of $1.1 million, which was partially offset by a decrease of $37.2 million in income taxes payable due in part to the recognition of Federal energy tax credits in the current year period and the timing of estimated tax payments and an increase in accounts receivable of $3.7 million due to the timing of receipts.
Current wording
For the six months ended June 30, 2025, operating cash provided by changes in non-cash operating working capital of $37.1 million was due to an increase in accounts payable and accrued liabilities of $69.5 million which was related to the timing of payments, a decrease in inventory of $4.1 million due to lower retail prices and volumes and a decrease in prepaid expenses of $3.6 million, which was partially offset by an increase in accounts receivable of $28.0 million due to slower timing of collecting receipts and a decrease of $12.1 million in income taxes payable due in part to the recognition of Federal energy tax credits in the current year period.
Previous wording
For the three months ended March 31, 2025, cash required by investing activities was $87.7 million compared to $74.9 million in 2024. The $12.8 million increase in cash required by investing activities in the current year period was primarily due to an increase of $11.6 million in capital expenditures due to the timing of payments for projects and a reduction of $1.0 million in the amount of maturities of marketable securities.
Current wording
For the six months ended June 30, 2025, cash required by investing activities was $204.3 million compared to $189.4 million in 2024. The $14.9 million increase in cash required by investing activities in the current year period was primarily due to an increase of $11.6 million in capital expenditures due to the timing of payments for projects and a reduction of $4.0 million in the amount of maturities of marketable securities.
Previous wording
Financing activities in the three months ended March 31, 2025 required cash of $38.4 million compared to cash of $122.2 million in the three months ended March 31, 2024, a decrease of $83.8 million. The first three months of 2025 included payments of $150.0 million for the repurchase of common shares, which was an increase of $63.6 million compared to repurchases of $86.4 million in the 2024 period. Dividend payments increased $1.0 million in 2025 compared to amounts paid in the first three months of 2024. Net borrowings of debt provided $140.0 million in 2025 compared to net repayments of debt requiring $3.9 million in 2024. Amounts related to share-based compensation required $4.5 million less in cash during 2025 than in 2024.
Current wording
Financing activities in the six months ended June 30, 2025 required cash of $172.2 million compared to cash of $245.4 million in the six months ended June 30, 2024, a decrease of $73.2 million. The first six months of 2025 included payments of $363.8 million for the repurchase of common shares, which was an increase of $171.3 million compared to repurchases of $192.5 million in the 2024 period. Dividend payments increased $1.7 million in 2025 compared to amounts paid in the first six months of 2024. Net borrowings of debt provided $239.3 million in 2025 compared to net repayments of debt requiring $7.8 million in 2024. Debt issuance cost related to financing activities increased $8.9 million in 2025. Amounts related to share-based compensation required $8.0 million less in cash during 2025 than in 2024.
Previous wording
During the three months ended March 31, 2025, the Company paid cash dividend payments of $0.49 per common share, for a total of $9.8 million, compared to the period ended March 31, 2024, in which dividends of $0.42 per common share were paid for total cash dividend payments of $8.8 million. As a part of our capital allocation strategy, the Company's intention is to deliver targeted double-digit growth in the per share dividend over time.
Current wording
During the six months ended June 30, 2025, the Company paid cash dividend payments of $0.99 per common share, for a total of $19.6 million, compared to the period ended June 30, 2024, in which dividends of $0.86 per common share were paid for total cash dividend payments of $17.9 million. As a part of our capital allocation strategy, the Company's intention is to deliver targeted double-digit growth in the per share dividend over time.
Previous wording
On May 2, 2023, our Board of Directors approved a share repurchase authorization of up to $1.5 billion. The authorization value excludes any excise tax that may be incurred. During the three months ended March 31, 2025, the Company repurchased a total of 321,119 common shares for approximately $151.2 million, at an average price of $470.80 per share, including accrued excise taxes. As of March 31, 2025, we had approximately $787.8 million remaining under our 2023 authorization.
Current wording
On May 2, 2023, our Board of Directors approved a share repurchase authorization of up to $1.5 billion. The authorization value excludes any excise tax that may be incurred. During the six months ended June 30, 2025, the Company repurchased a total of 791,827 common shares for approximately $211.9 million, at an average price of $450.25 per share, including accrued excise taxes. As of June 30, 2025, we had approximately $578.0 million remaining under our 2023 authorization.
Previous wording
Following a refinancing effective as of April 7, 2025, the credit agreement provides for a senior secured term loan in an aggregate principal amount of $600 million (the "Term Facility") (which was borrowed in full on April 7, 2025) and revolving credit commitments in an aggregate amount equal to $750 million (the "Revolving Facility", and together with the Term Facility, the "Credit Facilities").
Current wording
Following a refinancing effective as of April 7, 2025, the credit agreement provides for a senior secured term loan in an aggregate principal amount of $600.0 million (the "Term Facility") (which was borrowed in full on April 7, 2025) and revolving credit commitments in an aggregate amount equal to $750.0 million (the "Revolving Facility", and together with the Term Facility, the "Credit Facilities"). The term loan is due April 2032, and we are required to make quarterly principal payments of $1.5 million, which are due to begin on January 1, 2026. The outstanding balance of the term loan was $600 million at June 30, 2025 and at December 31, 2024, prior to refinancing, the outstanding balance of our term loan was $386 million. As of June 30, 2025, we had $88.0 million of outstanding borrowings under the Revolving Facility and $6.2 million of outstanding letters of credit (which reduces the amount available to borrow under the Revolving Facility).
Previous wording
The Term Facility amortizes in quarterly installments at a rate of 1.00% per annum. Pursuant to the credit agreement, the applicable margin, (A) in the case of Adjusted SOFR Rate borrowings, (i) with respect to the Revolving Facility, ranges from 1.25% to 2.00% per annum depending on a total debt to EBITDA ratio and (ii) with respect to the Term Facility, is 1.75% per annum and (B) in the case of Alternate Base Rate borrowings (i) with respect to the Revolving Facility, ranges from 0.25% to 1.00% per annum depending on a total debt to EBITDA ratio or (ii) with respect to the Term Facility, is 0.75% per annum..
Current wording
The Term Facility amortizes in quarterly installments, with the first amortization payment being due on January 1, 2026, at a rate of 1.00% per annum. Pursuant to the credit agreement, the applicable margin, (A) in the case of Adjusted SOFR Rate borrowings, (i) with respect to the Revolving Facility, ranges from 1.25% to 2.00% per annum depending on a total debt to EBITDA ratio and (ii) with respect to the Term Facility, is 1.75% per annum and (B) in the case of Alternate Base Rate borrowings (i) with respect to the Revolving Facility, ranges from 0.25% to 1.00% per annum depending on a total debt to EBITDA ratio or (ii) with respect to the Term Facility, is 0.75% per annum..
Previous wording
The credit agreement contains certain covenants that limit, among other things, the ability of the Company and certain of its subsidiaries to incur additional indebtedness or liens, to make certain investments, to enter into sale-leaseback transactions, to make certain restricted payments, to enter into consolidations, mergers or sales of material assets and other fundamental changes, to transact with affiliates, to enter into agreements restricting the ability of subsidiaries to incur liens or pay dividends, or to make certain accounting changes. The credit agreement also contains customary events of default.
Current wording
The credit agreement contains certain covenants that limit, among other things, the ability of the Company and certain of its subsidiaries to incur additional indebtedness or liens, to make certain investments, to enter into sale-leaseback transactions, to make certain restricted payments, to enter into consolidations, mergers or sales of material assets and other fundamental changes, to transact with affiliates, to enter into agreements restricting the ability of subsidiaries to incur liens or pay dividends, or to make certain accounting changes. The Revolving Facility credit agreement also imposes total leverage ratio and secured net leverage ratio financial maintenance covenants which are tested quarterly. Pursuant to the total leverage ratio financial maintenance covenant, the Company must maintain a total leverage ratio of not more than 5.0 to 1.0 with an ability in certain circumstances to temporarily increase that limit to 5.5 to 1.0 and a consolidated cash interest coverage ratio of not less than 2.50 to 1.0. The Credit Agreement also contains customary events of default.
Previous wording
The combined assets, liabilities and results of operations of MOUSA and the guarantors are not materially different from corresponding amounts presented in the consolidated financial statements included herein. MOUSA is our primary operating subsidiary and generated the vast majority of our revenues for the three months ended March 31, 2025, and accounted for the vast majority of our total assets as of March 31, 2025. In the event MOUSA itself were unable to service the Company's consolidated debt obligations, our business and financial condition would be materially adversely impacted.
Current wording
The combined assets, liabilities and results of operations of MOUSA and the guarantors are not materially different from corresponding amounts presented in the consolidated financial statements included herein. MOUSA is our primary operating subsidiary and generated the vast majority of our revenues for the three and six months ended June 30, 2025, and accounted for the vast majority of our total assets as of June 30, 2025. In the event MOUSA itself were unable to service the Company's consolidated debt obligations, our business and financial condition would be materially adversely impacted.
Previous wording
Capital spending and investments in our Marketing segment relate primarily to the acquisition of land and the construction of new Company stores. Our Marketing capital is also deployed to improve our existing stores, which we refer to as maintenance capital. We use maintenance capital in this business as needed to ensure reliability and continued performance of our stores. We also invest in our Corporate and other assets segment which is primarily technology related.
Current wording
Capital spending and investments in our Marketing segment relate primarily to the acquisition of land and the construction of new Company stores. Our Marketing capital is also deployed to improve our existing stores, which we refer to as maintenance capital. We use maintenance capital in this business as needed to ensure reliability and continued performance of our stores. The remainder of our capital spending and investment activity, which is primarily technology related, is attributable to Corporate and other assets.
Previous wording
The following table outlines our capital spending and investments by segment for the three month periods ended March 31, 2025 and 2024:
Current wording
The following table outlines our capital spending and investments for the three and six month periods ended June 30, 2025 and 2024:
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
The effective income tax rate was approximately 24.4% for Q2 2025 compared to 25.1% in Q2 2024.
Current report — wording carried from elsewhere
Depreciation and amortization expense increased $16.2 million, or 13.7%, year-to-date from the same period of 2024 primarily due to the increased number of Murphy branded stores with larger formats, raze-and-rebuild activity in the quarter and strategic investments related to technology improvement initiatives in recent years.
Current report — wording carried from elsewhere
Marketing segment net income for the six months ended June 30, 2025 was lower compared to the same six-month period in 2024 primarily due to:
Current report — wording carried from elsewhere
•Higher store and other operating expenses
Current report — wording carried from elsewhere
The items below partially offset the decrease in net income in the six-month period: