EL DORADO, Ark. --Murphy USA’s organic unit-growth plan “is off to a brisk pace,” president and CEO Andrew Clyde said during the company’s first-quarter 2016 earnings call May 9.
Since the beginning of 2016, Murphy has opened three new stores, with 23 new stores currently under construction. The chain also remains on target to add 60 to 80 stores to its network this year.
“By the time we finish 2016, we will be operating in three additional states—Nevada, Utah and Nebraska—as we open Murphy Express stores in those markets as part of our independent growth plan where we target high-return unit growth in attractive markets,” Clyde said during a previous earnings call.
Also, all 10 of Murphy’s planned raze-and-rebuild stores are underway; more than half of the 120 super-cooler installations planned for 2016 are completed; and the company’s 300-store refresh program is on track.
The progress report comes four months after Wal-Mart Stores Inc. announced it would halt the development of new Supercenter gas stations with Murphy USA Inc. to focus on its existing proprietary fuel offering.
Other highlights from Murphy USA’s first-quarter 2016 earnings call:
- Retail fuel volume for Murphy grew 4.6% overall at 11.1-cents-per-gallon (CPG) margins, representing “the highest first-quarter margin since 2002,” said Clyde.
- Same-store sales were up 4% overall, and record margins resulted in a 13.9% increase in same-store tobacco margin dollars and a 11.5% increase in same-store nontobacco margin dollars.
- Merchandise contribution dollars were up 16.8% year over year to $85.9 million at record average unit margins of 15.3%.
- Net income was $85.9 million, which included $56 million of after-tax gain on disposition of the CAM pipeline system that closed March 31.
“We are excited about the results we achieved in Q1 and the momentum it creates for the full year,” Clyde said. “We are well positioned to continue to invest in the organic growth potential of our business, while sustaining our commitment to return value to our shareholders.”
El Dorado, Ark.-based Murphy USA has 1,335 gas stations in 24 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.