Murphy Usa Inc. · NYSE:MUSA
Murphy Usa — Raymond James Institutional Investors Conference 2021
16 slides from Murphy Usa's conference presentation, March 2021
Slide 1: Raymond James Institutional Investors Conference
Raymond James Institutional Investors Conference March 2021 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: Management
Management Andrew Clyde, President and Chief Executive Officer • Appointed President and Chief Executive Officer of Murphy USA January 2013 • Leads the development and execution of our strategy for creating long-term shareholder value • Oversees corporate-wide strategic initiatives enabling Murphy U
Slide 4: “Raising the Bar” from new starting point
“Raising the Bar” from new starting point MUSA High and Low Closing Share Price with Annual Set the Bar Raise the Bar Average by Year Since Spin Spin to 2019 2021 to 2024 As of 2/15/2021 TSR: 15% CAGR TSR: ~15% CAGR $150 $143 2013 2019 2021 2024 Spin to 2019 Average: 15% CAGR $132 Adjusted $130 $340
Slide 5: COVID highlighted MUSA’s resiliency and agility
COVID highlighted MUSA’s resiliency and agility Key Metrics Table COVID Impact on Consumers: 2019 2020 Change . • Purchasing behaviors changed • Destination trips less frequent SSS Gallons (K) 244 216 ▼ 12.3% • Focus on value amplified Fuel Total Fuel Contribution (MM) $705 $982 ▲ 39.4% Durability a
Slide 6: QuickChek acquisition complements value creation story
QuickChek acquisition complements value creation story MUSA Value Creation Drivers Strategy Enhanced Levers Build/Rebuild • Optimize MUSA format and consolidated Organic capital expenditures Growth assets where • Accelerate build-out of QuickChek sites we have a * right to win • Establish appropriat
Slide 7: Business poised to accelerate in 2021
Business poised to accelerate in 2021 1. Accelerating High Quality Organic Growth – Building bigger, better stores – Leveraging higher performing 2,800 sq. ft. format on MUSA NTIs – Accelerating higher margin F&B offer with QuickChek capabilities 2. Improving Store Profitability – Growing coverage r
Slide 8: Accelerating high-quality organic growth
Accelerating high-quality organic growth Building Bigger, Better Stores Annual Square Footage Additions • Up to 55 Murphy and QuickChek NTI’s 82k sq. ft. from 2015/2016 • Incremental retail space dedicated to Average 70 MUSA higher margin non-tobacco products branded stores 167k sq. ft. from • Multi
Slide 9: Improving store profitability
Improving store profitability MUSA Coverage Ratio and Fuel Breakeven Growing Coverage Ratio 2013 – 2020 117% 4.0 Fuel Breakeven (cpg) 120% Coverage Ratio 3.23 • Investments in critical categories paid off 109% 110% 111% 3.0 110% 105% • Opportunity set grows with larger box 2.0 • Early cost optimizat
Slide 10: Industry fuel margins moving higher
Industry fuel margins moving higher Breakeven Economics Under Pressure MUSA Quarterly Retail Margins for Marginal Retailers 2013-2020 $0.35 • COVID industry demand loss persists $0.30 MUSA Retail Margins • Lower customer traffic impacting both $0.25 in-store and fuel island transactions • Breakeven
Slide 11: Capital allocation remains balanced with added optionality
Capital allocation remains balanced with added optionality Mindset Since Spin Capital Allocation 2015 – 2019 • Balanced capital allocation strategy between growth and repurchase • Share repurchases exclusive use of free cash flows Share • Discounted valuation and improvement Capital Expenditures Rep
Slide 12: Fundamentals remain highly favorable
Fundamentals remain highly favorable • MUSA’s advantaged business model put to the test in 2020—and emerged stronger – Demonstrated resilience in the face of a global pandemic – Showed agility in decision making, taking market share and standing up new product lines – Made bold moves, repurchasing ~
Slide 13: Appendix
Appendix % eee rere eee e eee eee eee eee ee eee eee ee Murphy USA Inc. f
Slide 14: 2021 guidance
2021 guidance 2020 Updated 2020 Actual Results 2021 Guidance Range Guidance Range Organic Growth New Stores 25-27 24 Up to 55 Raze and Rebuilds 28-30 33 Up to 25 Fuel Contribution Retail fuel volume per store (K gallons APSM) 217.5 to 222.5 220 245 to 255 Store Profitability Merchandise contribution
Slide 15: Non-GAAP adjusted EBITDA reconciliation
Non-GAAP adjusted EBITDA reconciliation Year Ended December 31, (Millions of dollars) 2013 2014 2015 2016 2017 2018 2019 2020 Net Income $ 235.0 $ 243.9 $ 176.3 $ 221.5 $ 245.3 $ 213.6 $ 154.8 $ 386.1 Income taxes 100.1 116.4 80.7 130.5 (5.2) 60.3 47.6 123.0 Interest expense, net of interest income
Slide 16: Non-GAAP Adjusted EBITDA Reconciliation
Non-GAAP Adjusted EBITDA Reconciliation 2021 and 2024 – GAAP to non-GAAP Reconciliation (Millions of dollars) Calendar Year 2021 Calendar Year 2024 Net Income $200 $263 Income taxes $65 $89 Interest expense, net of interest income $73 $73 Depreciation and amortization $211 $274 Other operating and n
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