Slide 1: Murphy USA Inc. (MUSA) 2017 Jefferies Consumer Conference
Murphy USA Inc. (MUSA) 2017 Jefferies Consumer Conference Nantucket, MA • June 20, 2017 Murphy USA Inc. 1
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains forward-looking statements. These statements, which express management’s current views concerning future events or results, are subject to inherent risks and uncertainties. Factors that could cause actual results to differ materially from those express
Slide 3: Murphy USA continues its proven and differentiated strategy
Murphy USA continues its proven and differentiated strategy • Murphy USA is uniquely positioned as a MUSA Relative Stock Performance low-cost fuel and convenience retailer Indexed From Spinoff to June 16, 2017 200 • Our strategy to compete has five coherent Murphy USA Inc. elements: S&P 500 Index –
Slide 4: MUSA creates value through a simple formula—and executes
MUSA creates value through a simple formula—and executes MUSA Value Creation Drivers 2016 Proof Point Details • 67 new sites Organic 5% unit growth • 10 Raze-and-Rebuilds Growth • 300 refresh; 180 super coolers * • +1.7% volume growth Fuel 5% all-in contribution • 15.4 cpg total margin growth Contri
Slide 5: Express growth, rebuilds continue in Independent Growth Plan
Organic Growth Express growth, rebuilds continue in Independent Growth Plan Estimated Store Activity 2015 - 2019 Raze & Rebuild 74 77 1 70 70 70 New Stores 10 20 Up to 20 Up to 20 73 67 45 to 50 Up to 50 Up to 50 2015a 2016a 2017e 2018e 2019e Total Units 1,335 1,401 1,451 1,501 1,551 Express Growth
Slide 6: Refresh and super cooler programs enhance network quality
Organic Growth Refresh and super cooler programs enhance network quality Refresh Program Before After • Refresh Program initiated to revitalize aging sites • In addition to updating and standardizing the look and feel of our stores, the program helps increase customer retention and lowers maintenanc
Slide 7: Fuel margins reside within a historical range of 14 to 16 cpg
Fuel Contribution Fuel margins reside within a historical range of 14 to 16 cpg MUSA Total Fuel Margin CPG • We expect to earn 14 to 16 cpg in total 18.5 fuel contribution from our combined retail 16.4 2.7 12.5 - and PS&W plus RIN sources 16.0 14.9 15.4 15.0 14.4 3.4 14.0 • MUSA’s total fuel margin
Slide 8: Volatility favors our low-cost business model
Fuel Breakeven Volatility favors our low-cost business model Total Fuel and Breakeven Margin (cpg) 2013 – 2016 Fuel Breakeven Margin (cpg) PS&W plus RIN 22.7 25 Retail Margins 20.4 20 18.7 18.5 17.9 16.4 16.7 14.9 15.5 15.4 15.4 15 13.8 14.0 13.9 14.0 12.3 10.1 CPG 10 5 3.4 2.8 2.5 1.6 0 -5 FY Q1 Q2
Slide 9: MUSA's in-store metrics buck industry trends
Fuel Breakeven MUSA’s in-store metrics buck industry trends Cumulative Growth in Cumulative Growth in Industry Metrics (APSM) MUSA Metrics (APSM) 2014 - 2016 2014 - 2016 21.5% (6.3%) contraction 15.2% 13.1% 9.1% 7.0% 6.5% +16.3% Data Not expansion Available 2.5% 1.4% 0.9% 2014 2015 2016 -3.2% 2014 2
Slide 10: SG&A investments enhance capabilities and scalability
Corporate Costs SG&A investments enhance capabilities and scalability Total SG&A ($MM) • People 2014 – 2017e – Establish competencies to achieve corporate goals and strategies 138 – Align incentive plans with principles and 129 competencies 119 123 – Empower leadership to drive change and support va
Slide 11: Capital allocation balances growth and capital returns
Shares Outstanding Capital allocation balances growth and capital returns Capital Allocation ($MM) Capital Allocation 2014 - 2016 2014 - 2016 $1,242 Retail Growth Capital $587 $623 $464 39% $323 50% $248 $191 $619 $52 7% $264 Share 4% $216 Repurchases Retail $139 Corporate Maintenance Capital Capita
Slide 12: We have strategically added leverage to boost equity returns
Shares Outstanding We have strategically added leverage to boost equity returns Leverage Structure and Ratio 2013 to 2017e Total Debt Debt / • Adding appropriate debt to the balance sheet allows us to leverage business ($MM) EBITDA 2.4x improvements for the benefit of long- 1,400 2.5x 1,200 2.0x ter
Slide 13: Through our formula, we continue to build a bright future
Through our formula, we continue to build a bright future MUSA Formula for EPS Growth MUSA Value Creation Drivers Organic Growth Disciplined * Capital Allocation Fuel Contribution + Commitment Modest to Share Organic Unit EPS Fuel Repurchase Growth Growth Breakeven − Corporate High Sustained Costs E