Murphy Usa Inc. · NYSE:MUSA
Murphy Usa — Non-Deal Roadshow (August 2013)
33 slides from Murphy Usa's roadshow presentation, Aug 16, 2013
Slide 1: Roadshow Presentation
Exhibit 99.1 Roadshow Presentation August 2013
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 Spin-off from Murphy Oil
MURPHY USA SPIN-OFF FROM MURPHY OIL August 30, 2013 distribution date – Murphy USA distribution ratio is 1 share for every 4 Murphy USA shares of Murphy Oil Corporation common stock – Murphy USA will begin trading on the NYSE under the “Retailer of ticker MUSA gasoline – Murphy Oil will retain its c
Slide 4: Management Team Representatives
MANAGEMENT TEAM REPRESENTATIVES Andrew Clyde -President and Chief Executive Officer of Murphy USA Mindy West -Executive Vice President, Chief Financial Officer and Treasurer of Murphy USA 4
Slide 5: Company Overview
COMPANY OVERVIEW MURPHY ”
Slide 6: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Murphy USA is one of the largest players in the C-store market Leading Player in Market Market share of approximately 5% in the markets in which we operate Strong relationship with Walmart Large portfolio of gasoline stations within an attractive geographic profile Signific
Slide 7: Competitive Strengths
COMPETITIVE STRENGTHS MURPHY USA Z
Slide 8: Five Reinforcing Strengths = Advantage
FIVE REINFORCING STRENGTHS = ADVANTAGE 1. Strategic and Complementary Relationship with Walmart 2. Winning 5. Strong Financial Proposition with Profile Value-Oriented Strengths Consumers 4. Advantaged Fuel 3. Low Cost Retail Supply Operating Model 8
Slide 9: Strategic & Complementary Relationship with Walmart
STRATEGIC & COMPLEMENTARY RELATIONSHIP WITH WALMART 1. Strategic and Network of 1,018 retail locations adjacent to Complementary Strengths Walmart stores and 161 stand-alone Murphy Express Relationship with locations Walmart Key regional focus: South and Midwest Co-Location Strategy MUSA Generates s
Slide 10: Winning Proposition with Value-Oriented Customers
WINNING PROPOSITION WITH VALUE-ORIENTED CUSTOMERS 2. Winning Strive to be the low-price leader in key markets Strengths Proposition with Targetcustomerswith a ‘destination’ focusvs.a Value-Oriented ‘convenience’focus Consumers Low Cost – ‘Destination’ consumers will plan their purchases to specifica
Slide 11: High-Volume Low-Price Operating Strategy
HIGH-VOLUME LOW-PRICE OPERATING STRATEGY Fuelsalesarethe primarycomponentof MUSAsalesandoperatingprofit 2. Winning Operating goals: Strengths Proposition with Maintain margin or mitigate contraction during periods of commodity price increases Value-Oriented – Consumers – Expand margin during periods
Slide 12: Low Cost Retail Operating Model
LOW COST RETAIL OPERATING MODEL MUSA builds and operates kiosk-format stores vs. traditional larger format C-stores Primarily2 footprints:208sq.ft. (77%of locations)and1,200sq.ft. (4%of locations)(a) Small Format Strengths – Majority of new locations will be the 1,200 sq. ft. format Public comps’ave
Slide 13: Benefits of 1,200 sq. ft. Kiosk
BENEFITS OF 1,200 SQ. FT. KIOSK 1,200 sq.ft. Kiosk Layout Additional floor space allows for inside ATM’s Curved design provides natural traffic paths Product mix enhancement Cross merchandising opportunities Addition of warmer program and frozen dispensed Dispensed coffee and fountain become focal p
Slide 14: Advantaged Fuel Supply
ADVANTAGED FUEL SUPPLY MUSA MIDSTREAM ASSETS Strengths 4. Advantaged Fuel Supply Ability to source fuel at very competitive industry benchmark prices – Bulk and rack markets – Shipper status on major pipeline systems – Access to terminals Strongdistributionsystemutilizes“BestBuy”method – Dispatch 3r
Slide 15: Strong Financial Profile
STRONG FINANCIAL PROFILE Lowcashbreakevenpositionon fuel marginof 6.6centsper gallonallows MUSAto weathersustainedperiodsof reducedfuel margins(e.g.,during Strengths 5. Strong Financial rising wholesale price environment) Profile 90% of 1,179(a) gasoline stations are Company-owned; most stations are
Slide 16: Retail Sales & Margins
RETAIL SALES & MARGINS 5. Strong Financial Profile 2012 FUEL VOLUME / STORE / MONTH 2012 MERCHANDISE SALES / STORE / MONTH 300 $180 277 $160 $156.4 250 $138.6 $140 200 $120 $101.4 $100 $96.3 $95.9 $92.6 150 131 127 $80 95 100 $60 77 73 $40 50 $20 - $- Murphy USA Corner Store Susser Pantry Casey's Co
Slide 17: Retail Sales-to-Cost Metrics
RETAIL SALES-TO-COST METRICS 5. Strong Financial Profile Annual Merchandise Sales Dollars by Square Foot Fuel Gallons (K) Average per Store Month (APSM) MUSA 4,744 MUSA 277 Industry 547 Industry 124 All Other 12% Large Format 7% 208 sqft Kiosk MUSA Store Format Mix 1200 sqft Kiosk 77% % of Stores by
Slide 18: Business Strategies
BUSINESS STRATEGIES MURPHY 18 USA
Slide 19: Strategy = Coherent Choices Building on Strengths
STRATEGY = COHERENT CHOICES BUILDING ON STRENGTHS 1. Grow Organically with Walmart 2. Enhance Kiosk 5. Focus on Economics to Long-Term Improve Investment Investment Returns Strategy 3. Improve 4. Focus Midstream Functional Infrastructure to Participation Lower Overhead Costs 19
Slide 20: Grow Organically with Walmart
GROW ORGANICALLY WITH WALMART Our relationship with Walmart will be a key driver of our organic growth over the next several years Plan to build approximately 200 sites in our core market at or 1. Grow near Walmart locations over the next three years Organically with Partner with Walmart in our fuel
Slide 21: Enhanced Kiosk Economics
ENHANCED KIOSK ECONOMICS 2. Enhance Kiosk 2012 MUSA NON-FUEL MIX BY FORMAT Economics to ($ 000s per site month) Improve Strategy Investment $151 Returns $14 Other Merchandise $116 $27 (62.0% GP) $5 $7 Plan to continuously evaluate kiosk strategy to maximize site Beverages economics and return on inv
Slide 22: Lower Overhead Costs
LOWER OVERHEAD COSTS 1. Grow Organically with Walmart Better positioned to manage our cost structure, execute a more scalable business model 2. Enhance Kiosk and implement technology and 5. Focus on Economics to business efficiency initiatives Long-Term Improve Investment Investment Returns Focus on
Slide 23: Focused Midstream Participation
FOCUSED MIDSTREAM PARTICIPATION 1. Grow We will focus on midstream Organically with activities that enhance our Walmart ability to be a low cost and low price retail fuel leader 2. Enhance Kiosk We also intend to allocate 5. Focus on Economics to capital and human resources Long-Term Improve Investm
Slide 24: Long-Term Investment Focus
LONG-TERM INVESTMENT FOCUS 1. Grow Maintain a portfolio of fee- Organically with simple assets and appropriate Walmart debt structure resilient to inherent fuel price/margin volatility 2. Enhance Kiosk 5. Focus on Economics to Execute our low-cost, high- Long-Term Improve volume retail strategy and
Slide 25: Financial Overview
FINANCIAL OVERVIEW MURPHY Co
Slide 26: Capitalization
CAPITALIZATION Pro forma capitalization ($ in thousands) Significant liquidity provided by strong June 30, 2013 As Adjusted cash position and revolving credit Cash and equivalents $44,588 facility will allow MUSA to pursue Debt Outstanding growth program through business $450mm ABL Revolving Credit
Slide 27: Retail Fuel & Merchandise Performance
RETAIL FUEL & MERCHANDISE PERFORMANCE AVERAGE GALLONS PER STORE MONTH MERCHANDISE SALES PER STORE MONTH 350 $180 312 307 $158 $156 $157 $160 $154 300 278 277 279 $138 $140 250 $120 200 $100 150 $80 $60 100 $40 50 $20 0 $0 2009 2010 2011 2012 Q2 2013 2009 2010 2011 2012 Q2 2013 GROSS MARGIN PER GALLO
Slide 28: MUSA Consolidated Financial Metrics
MUSA CONSOLIDATED FINANCIAL METRICS GROSS MARGIN Adjusted EBITDA $1,200 $450 $409 $1,014 $1,018 $1,000 $928 $400 $360 $822 $350 $800 $293 $285 $576 $300 $600 $250 $400 $200 $200 $150 $128 $0 $100 2009 2010 2011 2012 LTM 6/30/13 2009 2010 2011 2012 LTM 6/30/13 CAPITAL EXPENDITURES AdjustedEBITDA– MAI
Slide 29: Historical MUSA Financial Summary
HISTORICAL MUSA FINANCIAL SUMMARY (Millions of dollars) 2010 2011 2012 LTM 6/30/13 (a)(b) Fuel and ethanol sales 13,623 17,158 17,511 17,210 Fuelandethanol cost of goodssold(a) 13,053 16,408 16,871 16,479 Fuel and Ethanol Contribution 570 750 640 731 Merchandise sales 1,969 2,116 2,144 2,153 Merchan
Slide 30: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Leading player in market Significant scale and attractive growth opportunity Strong portfolio of owned real estate Advantaged fuel supply Strong financial profile 30
Slide 31: Appendix
APPENDIX MURPHY " USA
Slide 32: MUSA Non-GAAP Reconciliation
MUSA NON-GAAP RECONCILIATION AdjustedEBITandEBITDA The Company defines Adjusted EBIT as income from continuing operations plus income taxes, net interest expense, impairment of assets, and accretion expense. The Company also defines Adjusted EBITDA as income (loss) and comprehensive income (loss) pl
Slide 33: MUSA Non-GAAP Reconciliation
MUSA NON-GAAP RECONCILIATION CapitalEmployed The Company considers the metric Adjusted EBIT divided by Capital Employed to be an important measure of the use of the Company’s fixed assets and liquidity to maximize investment returns for shareholders. This measure is considered to be non-GAAP because