WAVERLY, Iowa -- Six Murphy USA gas stations located adjacent to Wal-Mart stores in Iowa will be closed, reported the Associated Press.
The Murphy Oil Corp. stations are in Waverly, Independence, Marshalltown, Anamosa, Grinnell and Le Mars, Iowa, are among 47 stations to be closed.
At the end of April, when Murphy Oil announced that its wholly owned subsidiary Murphy Oil USA Inc. had entered into an agreement with Wal-Mart Stores Inc. and subsidiaries to purchase parcels of property that the company currently leases from Wal-Mart, [image-nocss] it said that it would close up to 47 locations and incur after-tax impairment and restoration costs of approximately $18 million in second-quarter 2007 that was not included in previously issued earnings guidance.
A company spokesperson told AP on Tuesday that a list of stations to be closed has been developed but not released.
Murphy USA's retail presence currently covers 21 states primarily in the Southeast and upper Midwest.
Under the terms of the agreement, the conveyance of the parcels will occur in multiple phases over the next year. Expansion of the Murphy USA program will continue with additional opportunities to purchase new site locations in the future.
Claiborne P. Deming, Murphy Oil's president and CEO, said when the deal was announced, The purchase of these parcels reflects our commitment to sustaining the longevity of these very productive assets. We look forward to continuing our association with Wal-Mart as we expand our station base in the future while adhering to our strategy of offering high quality, competitively priced gasoline to our customers.
As a result of this transaction, capital expenditures for the company are expected to increase by up to approximately $315 million during the 2007/2008 period.
El Dorado, Ark.-based Murphy Oil has more than 1,000 stations in 21 states.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.