10-Q 1 musa-20240930.htm 10-Q musa-20240930
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
 
(Mark one)        
 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended September 30, 2024
 
OR

☐  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from _______________ to _______________
 
Commission File Number 001-35914

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MURPHY USA INC.

(Exact name of registrant as specified in its charter)
Delaware46-2279221
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
200 Peach Street 
El Dorado,Arkansas71730-5836
(Address of principal executive offices)(Zip Code)
 
(870) 875-7600
(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 Par ValueMUSANew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  ☑ Yes ☐ No
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   ☑  Yes ☐ No
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer  ☑ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   ☐ Yes ☑ No
Number of shares of Common Stock, $0.01 par value, outstanding at September 30, 2024 was 20,249,099.


 
MURPHY USA INC.
 
TABLE OF CONTENTS
 
 
 
 
 


1



ITEM 1.  FINANCIAL STATEMENTS
Murphy USA Inc.
Consolidated Balance Sheets
September 30,December 31,
(Millions of dollars, except share amounts)20242023
(unaudited)
Assets  
Current assets  
Cash and cash equivalents$52.5 $117.8 
Marketable securities, current1.5 7.1 
Accounts receivable—trade, less allowance for doubtful accounts of $0.6 and $1.3 at 2024 and 2023, respectively
262.6 336.7 
Inventories, at lower of cost or market341.2 341.2 
Prepaid expenses and other current assets31.3 23.7 
Total current assets689.1 826.5 
Marketable securities, non-current— 4.4 
Property, plant and equipment, at cost less accumulated depreciation and amortization of $1,868.7 and $1,739.2 at 2024 and 2023, respectively
2,739.9 2,571.8 
Operating lease right of use assets, net484.8 452.1 
Intangible assets, net of amortization139.6 139.8 
Goodwill328.0 328.0 
Other assets21.0 17.5 
Total assets$4,402.4 $4,340.1 
Liabilities and Stockholders' Equity  
Current liabilities  
Current maturities of long-term debt$15.7 $15.0 
Trade accounts payable and accrued liabilities780.3 834.7 
Income taxes payable62.8 23.1 
Total current liabilities858.8 872.8 
Long-term debt, including capitalized lease obligations1,820.0 1,784.7 
Deferred income taxes325.5 329.5 
Asset retirement obligations47.4 46.1 
Non-current operating lease liabilities487.7 450.3 
Deferred credits and other liabilities32.9 27.8 
Total liabilities3,572.3 3,511.2 
Stockholders' Equity  
Preferred Stock, par $0.01 (authorized 20,000,000 shares, none outstanding)
— — 
Common Stock, par $0.01 (authorized 200,000,000 shares, 46,767,164 shares issued at 2024 and 2023, respectively)
0.5 0.5 
Treasury stock (26,518,065 and 25,929,836 shares held at 2024 and 2023, respectively)
(3,265.9)(2,957.8)
Additional paid in capital (APIC)484.7 508.1 
Retained earnings3,610.8 3,278.1 
Total stockholders' equity830.1 828.9 
Total liabilities and stockholders' equity$4,402.4 $4,340.1 

See notes to consolidated financial statements.
2


Murphy USA Inc.
Consolidated Statements of Income
(unaudited)

 Three Months Ended
September 30,		Nine Months Ended
September 30,
(Millions of dollars, except share and per share amounts)2024202320242023
Operating Revenues  
Petroleum product sales1
$4,121.4 $4,658.8 $12,273.6 $13,103.6 
Merchandise sales1,082.4 1,055.6 3,163.5 3,070.8 
Other operating revenues34.7 83.5 96.8 286.1 
Total operating revenues5,238.5 5,797.9 15,533.9 16,460.5 
Operating Expenses  
Petroleum product cost of goods sold1
3,751.2 4,322.5 11,287.5 12,273.1 
Merchandise cost of goods sold865.6 843.8 2,538.6 2,465.1 
Store and other operating expenses276.1 265.6 798.1 760.6 
Depreciation and amortization62.8 57.5 180.8 171.7 
Selling, general and administrative60.0 60.0 181.2 178.4 
Accretion of asset retirement obligations0.8 0.7 2.4 2.2 
Total operating expenses5,016.5 5,550.1 14,988.6 15,851.1 
Gain (loss) on sale of assets(0.4)(0.5)(1.4)(0.6)
Income (loss) from operations221.6 247.3 543.9 608.8 
Other income (expense)  
Investment income1.0 2.1 3.1 4.7 
Interest expense(24.4)(24.6)(74.2)(74.5)
Other nonoperating income (expense)0.5 (1.4)1.0 (0.9)
Total other income (expense)(22.9)(23.9)(70.1)(70.7)
Income before income taxes198.7 223.4 473.8 538.1 
Income tax expense (benefit)49.5 55.7 113.8 131.3 
Net Income $149.2 $167.7 $360.0 $406.8 
Basic and Diluted Earnings Per Common Share:  
Basic$7.30 $7.83 $17.43 $18.80 
Diluted$7.20 $7.69 $17.17 $18.47 
Weighted-Average Common Shares Outstanding (in thousands):  
Basic20,440 21,401 20,659 21,635 
Diluted20,735 21,790 20,969 22,020 
Supplemental information:  
 1 Includes excise taxes of:
$601.1 $582.1 $1,757.4 $1,721.0 

See notes to consolidated financial statements.

3


Murphy USA Inc.
Consolidated Statements of Comprehensive Income (Loss)
(unaudited)

(Millions of dollars)Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Net income $149.2 $167.7 $360.0 $406.8 
Other comprehensive income (loss), net of tax
Interest rate swap:
Reclassifications:
Amortization of unrealized (gain) loss to interest expense— 0.1 — 0.6 
— 0.1 — 0.6 
Deferred income tax (benefit) expense— — — 0.1 
Other comprehensive income (loss)— 0.1 — 0.5 
Comprehensive income $149.2 $167.8 $360.0 $407.3 

See notes to consolidated financial statements.
4


Murphy USA Inc.
Consolidated Statements of Cash Flows
(unaudited) 

 (Millions of dollars)
Nine Months Ended
September 30,
20242023
Operating Activities  
Net income $360.0 $406.8 
Adjustments to reconcile net income (loss) to net cash provided by (required by) operating activities 
Depreciation and amortization180.8 171.7 
Deferred and noncurrent income tax charges (benefits)(4.0)0.1 
Accretion of asset retirement obligations2.4 2.2 
Amortization of discount on marketable securities(0.1)— 
(Gains) losses from sale of assets1.4 0.6 
Net (increase) decrease in noncash operating working capital32.0 (97.2)
Other operating activities - net26.4 26.7 
Net cash provided (required) by operating activities598.9 510.9 
Investing Activities  
Property additions(331.1)(224.6)
Proceeds from sale of assets1.9 2.3 
Investment in marketable securities— (11.3)
Redemptions of marketable securities10.0 18.0 
Other investing activities - net(1.7)(1.4)
Net cash provided (required) by investing activities(320.9)(217.0)
Financing Activities  
Purchase of treasury stock(317.7)(172.7)
Dividends paid(27.1)(24.7)
Borrowings of debt345.0 8.0 
Repayments of debt(315.7)(19.6)
Amounts related to share-based compensation(27.8)(20.6)
Net cash provided (required) by financing activities(343.3)(229.6)
Net increase (decrease) in cash, cash equivalents, and restricted cash(65.3)64.3 
Cash, cash equivalents, and restricted cash at beginning of period117.8 60.5 
Cash, cash equivalents, and restricted cash at end of period$52.5 $124.8 

See notes to consolidated financial statements.
5


Murphy USA Inc.
Consolidated Statements of Changes in Equity
(unaudited)

 Common Stock    
(Millions of dollars, except share amounts)SharesParTreasury StockAPICRetained EarningsAOCITotal
Balance as of December 31, 2022
46,767,164 $0.5 $(2,633.3)$518.9 $2,755.1 $(0.5)$640.7 
Net income— — — — 106.3 — 106.3 
Gain on interest rate hedge and unrealized gain on marketable securities, net of tax— — — — — 0.2 0.2 
Cash dividends declared ($0.37 per share)
— — — — (8.1)— (8.1)
Dividend equivalent units accrued— — — 0.1 (0.1)— — 
Purchase of treasury stock— — (13.7)— — — (13.7)
Issuance of treasury stock— — 8.7 (8.7)— — — 
Amounts related to share-based compensation— — — (13.5)— — (13.5)
Share-based compensation expense— — — 4.9 — — 4.9 
Balance as of March 31, 2023
46,767,164 0.5 (2,638.3)501.7 2,853.2 (0.3)716.8 
Net income — — — — 132.8 — 132.8 
Gain on interest rate hedge and unrealized gain on marketable securities, net of tax— — — — — 0.20.2 
Cash dividends declared ($0.38 per share)
— — — — (8.2)— (8.2)
Dividend equivalent units accrued— — — 0.1 (0.1)— — 
Purchase of treasury stock— — (95.1)— — — (95.1)
Issuance of treasury stock— — 0.3 (0.4)— — (0.1)
Amounts related to share-based compensation— — — (0.8)— — (0.8)
Share-based compensation expense— — — 5.2 — — 5.2 
Balance as of June 30, 2023
46,767,164 0.5 (2,733.1)505.8 2,977.7 (0.1)750.8 
Net income — — — — 167.7 — 167.7 
Gain on interest rate hedge and unrealized gain on marketable securities, net of tax— — — — — 0.1 0.1 
Cash dividends declared ($0.39 per share)
— — — — (8.4)— (8.4)
Dividend equivalent units accrued— — — 0.2 (0.2)— — 
Purchase of treasury stock— — (65.3)— — — (65.3)
Issuance of treasury stock— — 2.5 (2.7)— — (0.2)
Amounts related to share-based compensation— — — (6.3)— — (6.3)
Share-based compensation expense— — — 5.7 — — 5.7 
Balance as of September 30, 2023
46,767,164 $0.5 $(2,795.9)$502.7 $3,136.8 $— $844.1 




6


Murphy USA Inc.
Consolidated Statements of Changes in Equity
(unaudited)

 Common Stock    
(Millions of dollars, except share amounts)SharesParTreasury StockAPICRetained EarningsAOCITotal
Balance as of December 31, 2023
46,767,164 $0.5 $(2,957.8)$508.1 $3,278.1 $— $828.9 
Net income— — — — 66.0 — 66.0 
Cash dividends declared ($0.42 per share)
— — — — (8.8)— (8.8)
Dividend equivalent units accrued— — — 0.1 (0.1)— — 
Purchase of treasury stock— — (86.9)— — — (86.9)
Issuance of treasury stock— — 11.0 (11.1)— — (0.1)
Amounts related to share-based compensation— — — (23.1)— — (23.1)
Share-based compensation expense— — — 5.6 — — 5.6 
Balance as of March 31, 2024
46,767,164 0.5 (3,033.7)479.6 3,335.2 — 781.6 
Net income— — — — 144.8 — 144.8 
Cash dividends declared ($0.44 per share)
— — — — (9.1)— (9.1)
Purchase of treasury stock— — (107.1)— — — (107.1)
Issuance of treasury stock— — 1.4 (1.3)— — 0.1 
Amounts related to share-based compensation— — — (4.1)— — (4.1)
Share-based compensation expense— — — 5.1 — — 5.1 
Balance as of June 30, 2024
46,767,164 0.5 (3,139.4)479.3 3,470.9 — 811.3 
Net income — — — — 149.2 — 149.2 
Cash dividends declared ($0.45 per share)
— — — — (9.2)— (9.2)
Dividend equivalent units accrued— — — 0.1 (0.1)— — 
Purchase of treasury stock— — (126.4)— — — (126.4)
Issuance of treasury stock— — (0.1)(0.1)— — (0.2)
Amounts related to share-based compensation— — — (0.6)— — (0.6)
Share-based compensation expense— — — 6.0 — — 6.0 
Balance as of September 30, 2024
46,767,164 $0.5 $(3,265.9)$484.7 $3,610.8 $— $830.1 

See notes to consolidated financial statements.

7

Murphy USA Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)



Note 1 — Description of Business and Basis of Presentation
 
Description of business — Murphy USA Inc. and its consolidated subsidiaries (“Murphy USA”, "we", "our", "us" or the “Company”) markets refined products through a network of retail gasoline stores and to unbranded wholesale customers. In addition, we operate non-fuel convenience stores in select markets. The Company owns and operates a chain of retail stores under the brand names of Murphy USA® and Murphy Express, most of which are located in close proximity to Walmart stores, and also has a mix of convenience stores with and without retail gasoline that operate under the brand name of QuickChek®. At September 30, 2024, the Company had a total of 1,740 Company stores of which 1,586 were branded as Murphy and 154 were the QuickChek brand. The Company also has certain product supply and wholesale assets, including product distribution terminals and pipeline positions.
 
Basis of Presentation — Murphy USA was incorporated in March 2013 and, in connection with its incorporation, Murphy USA issued 100 shares of common stock, par value $0.01 per share, to Murphy Oil Corporation (“Murphy Oil”) for $1.00. On August 30, 2013, Murphy USA was separated from Murphy Oil through the distribution of 100% of the common stock of Murphy USA to holders of Murphy Oil stock. Murphy USA Inc., Murphy Oil USA, Inc. and certain of its subsidiaries operate on a calendar year basis, while the QuickChek subsidiary uses a weekly retail calendar where each quarter has 13 weeks. For the three month period ended September 30, 2024, the QuickChek results covered the period June 29, 2024 to September 27, 2024, and the 2024 year-to-date period began December 30, 2023. For the three month period ended September 30, 2023, the QuickChek results covered the period July 1, 2023 to September 29, 2023, and the 2023 year-to-date period began December 31, 2022. The difference in timing of the period ends is immaterial to the overall consolidated results.
 
In preparing the financial statements of Murphy USA in conformity with accounting principles generally accepted in the United States, management has made a number of estimates and assumptions related to the reporting of assets, liabilities, revenues, expenses and the disclosure of contingent assets and liabilities. Actual results may differ from these estimates.

Interim Financial Information — The interim period financial information presented in these consolidated financial statements is unaudited and includes all known accruals and adjustments, in the opinion of management, necessary for a fair presentation of the consolidated financial position of Murphy USA and its results of operations and cash flows for the periods presented. All such adjustments are of a normal and recurring nature.
 
These interim consolidated financial statements should be read together with our audited financial statements for the years ended December 31, 2023, 2022 and 2021, included in our Annual Report on Form 10-K (File No. 001-35914), as filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934 on February 16, 2024.

Recently Issued Accounting Standards— 

In December 2023, the FASB issued ASU 2023-07, "Segment Reporting: Improvements to Reportable Segment Disclosures." The amendments in this Update improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities and clarifies that single reportable segment entities must apply Topic 280 in its entirety. The amendments in this Update for annual disclosures were effective for the Company on January 1, 2024, and the interim disclosures will be effective for the year beginning January 1, 2025, with early adoption permitted. The amendments will be applied retrospectively to all prior periods presented in the financial statement. The Company has determined this will not have a material impact on the Company's consolidated financial statements and disclosures.

In December 2023, the FASB issued ASU 2023-09, "Improvements to Income Tax Disclosures." This ASU intends to enhance income tax disclosures, under Topic 740, to address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments in this Update improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. The amendments in this Update are effective for the Company for the year beginning January 1, 2025, with early adoption permitted. The
8

Murphy USA Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)


amendments should be applied on a prospective basis, with retrospective application permitted. The Company has determined this will not have a material impact on the Company's consolidated financial statements and disclosures.

Note 2 — Revenues

Revenue Recognition

Revenue is recognized when obligations under the terms of a contract with our customers are satisfied; generally, this occurs with the transfer of control of our petroleum products, convenience merchandise, Renewable Identification Numbers ("RINs") and other assets to our third-party customers. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Excise and sales tax that we collect where we have determined we are the principal in the transaction have been recorded as revenue on a jurisdiction-by-jurisdiction basis.

The Company enters into buy/sell and similar arrangements when petroleum products are held at one location but are needed at a different location. The Company often pays or receives funds related to the buy/sell arrangements based on location or quality differences. The Company accounts for such transactions as non-monetary exchanges under existing accounting guidance and typically reports these on a net basis in the Consolidated Statements of Income.

The following tables disaggregate our revenues by major source for the three and nine months ended September 30, 2024 and 2023, respectively:

Three Months Ended September 30, 2024Three Months Ended September 30, 2023
(Millions of dollars)MarketingCorporate and Other AssetsConsolidatedMarketingCorporate and Other AssetsConsolidated
Petroleum product sales
(at retail) 1
$3,758.1 $— $3,758.1 $4,134.8 $— $4,134.8 
Petroleum product sales
(at wholesale) 1
363.3 — 363.3 524.0 — 524.0 
Total petroleum product sales4,121.4 — 4,121.4 4,658.8 — 4,658.8 
Merchandise sales1,082.4 — 1,082.4 1,055.6 — 1,055.6 
Other operating revenues:
RINs32.7 — 32.7 81.7 — 81.7 
Other revenues 2
1.9 0.1 2.0 1.7 0.1 1.8 
Total revenues$5,238.4 $0.1 $5,238.5 $5,797.8 $0.1 $5,797.9 

9

Murphy USA Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)


Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023
(Millions of dollars)MarketingCorporate and Other AssetsConsolidatedMarketingCorporate and Other AssetsConsolidated
Petroleum product sales
(at retail) 1
$11,115.8 $— $11,115.8 $11,693.7 $— $11,693.7 
Petroleum product sales
(at wholesale) 1
1,157.8 — 1,157.8 1,409.9 — 1,409.9 
Total petroleum product sales12,273.6 — 12,273.6 13,103.6 — 13,103.6 
Merchandise sales3,163.5 — 3,163.5 3,070.8 — 3,070.8 
Other operating revenues:
RINs91.0 — 91.0 281.2 — 281.2 
Other revenues 2
5.6 0.2 5.8 4.7 0.2 4.9 
Total revenues$15,533.7 $0.2 $15,533.9 $16,460.3 $0.2 $16,460.5 

1 Includes excise and sales taxes that remain eligible for inclusion under Topic 606
2 Primarily includes collection allowance on excise and sales taxes combined with other miscellaneous items

Marketing segment

Petroleum product sales (at retail). For our retail store locations, the revenue related to petroleum product sales is recognized as the fuel is pumped to our customers. The transaction price at the pump typically includes some portion of sales or excise taxes as levied in the respective jurisdictions. Those taxes that are collected for remittance to governmental entities on a pass-through basis are not recognized as revenue and they are recorded to a liability account until they are paid. Our customers typically use a mixture of cash, checks, credit cards and debit cards to pay for our products as they are received. We have accounts receivable from the various credit/debit card providers at any point in time related to product sales made on credit cards and debit cards. These receivables are typically collected in two to seven days, depending on the terms with the particular credit/debit card providers. Payment fees retained by the credit/debit card providers are recorded as Store and other operating expenses in the Consolidated Statements of Income.

Petroleum product sales (at wholesale). Our sales of petroleum products at wholesale are generally recorded as revenue when the deliveries have occurred and legal ownership of the product has transferred to the customer. Title transfer for bulk refined product sales typically occurs at pipeline custody points and upon trucks loading at product terminals. For bulk pipeline sales, we record receivables from customers that are generally collected within a week from custody transfer date. For our rack product sales, the majority of our customers' accounts are drafted by us within 10 days from product transfer.

Merchandise sales. For our retail store locations, the revenue related to merchandise sales is recognized as the customer completes their purchase at our locations. The transaction price typically includes some portion of sales tax as levied in the respective jurisdictions. Those taxes that are collected for remittance to governmental entities on a pass-through basis are not recognized as revenue and they are recorded to a liability account until they are paid. As noted above, a mixture of payment types are used for these revenues and the same terms for credit/debit card receivables are realized.

With respect to merchandise sales revenue we must determine whether we are the principal or agent for some categories of merchandise such as scratch-off lottery tickets, lotto tickets, newspapers and other small categories of merchandise. For scratch-off lottery tickets, we have determined we are the principal in the majority of the jurisdictions and therefore we record those sales on a gross basis. We have some categories of merchandise (such as lotto tickets) where we are the agent and the revenues recorded for those transactions are our net commission only.

The Company offers loyalty programs through each of its branded retail locations. The customers earn rewards based on their spending or other promotional activities. These programs create a performance obligation which requires us to defer a portion of sales revenue to the loyalty program participants until they redeem their rewards.
10

Murphy USA Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)


The rewards may be redeemed for free or discounted merchandise or cash discounts at all stores and on fuel purchases at Murphy branded stores. Earned rewards expire after an account is inactive for a period of 90 days at Murphy branded stores, while certain QuickChek rewards require use within the month. We recognize loyalty revenue when a customer redeems an earned reward. Deferred revenue associated with both rewards programs are included in Trade accounts payable and accrued liabilities in our Consolidated Balance Sheets. The deferred revenue balances at September 30, 2024 and December 31, 2023 were immaterial.

RINs sales. For the sale of RINs, we recognize revenue when the RIN is transferred to the counter-party and the sale is completed. Receivables from our counter-parties related to the RIN sales are typically collected within five days of the sale.

Other revenues. Items reported as other operating revenues include collection allowances for excise and sales tax and other miscellaneous items and are recognized as revenue when the transaction is completed.

Accounts receivable

Trade accounts receivable on the balance sheet represents both receivables related to contracts with customers and other trade receivables. At September 30, 2024 and December 31, 2023, we had $116.6 million and $178.2 million of receivables, respectively, related to contracts with customers recorded. All of the trade accounts receivable related to contracts with customers outstanding at the end of each period were collected during the succeeding quarter. These receivables were generally related to credit and debit card transactions along with short term bulk and wholesale sales to our customers, which have a very short settlement window.

Note 3 — Inventories

Inventories consisted of the following:
(Millions of dollars)September 30,
2024		December 31,
2023
Petroleum products - FIFO basis$315.8 $331.2 
Store merchandise for resale - FIFO basis216.4 209.1 
Less LIFO reserve(204.8)(212.1)
Total petroleum products and store merchandise inventory327.4 328.2 
Materials and supplies13.8 13.0 
Total inventories$341.2 $341.2 
 
At September 30, 2024 and December 31, 2023, the replacement cost (market value) of LIFO inventories exceeded the LIFO carrying value for petroleum products by $201.7 million and $209.7 million, respectively and store merchandise for resale by $3.1 million and $2.4 million, respectively.

Note 4 — Marketable Securities

The Company invests a portion of its excess operational cash in marketable securities. The goal of the Company's investment policy, in order of priority, are as follows: (1) preservation of principal, (2) maintaining a high degree of liquidity to meet cash flow requirements, and (3) deliver competitive returns subject to prevailing market conditions and the Company's stated objectives related to safety and liquidity. Nothing in the policy is intended to indicate that management must invest excess operational cash; it allows it to be subject to specific limitations.

Securities are generally required to have a final maturity of 24 months or less with a weighted average maturity for the portfolio of no longer than 12 months and must have an active secondary market. Investments may include U.S. Treasury bills, notes and bonds, U.S. Agency securities, repurchase agreements, certificates of deposit, institutional, government money market funds that maintain a stable $1.00 net asset value, domestic and foreign commercial paper, municipal securities, domestic and foreign debt issued by corporations or financial institutions with the primary objective of minimizing the potential risk of principal loss. The Company determines the
11

Murphy USA Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)


classification of its marketable securities based on its investment strategy at the time of purchase. All marketable securities in the periods presented have been classified as available-for-sale.

The amortized cost and carrying value (fair value) of marketable securities and the balance sheet location at September 30, 2024 and December 31, 2023 consisted of the following:

September 30, 2024
(Millions of dollars)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair Value
Available-for-sale securities:
Marketable securities current
U.S. Corporate bonds$1.5 — — $1.5 
Total marketable securities$1.5 $— $— $1.5 

December 31, 2023
(Millions of dollars)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair Value
Available-for-sale securities:
Marketable securities current
U.S. Government bonds$3.0 $— $— $3.0 
U.S. Corporate bonds3.9 — — 3.9 
Investment income receivable0.2 — — 0.2 
7.1 — — 7.1 
Marketable securities non-current
U.S. Corporate bonds2.9 — — 2.9 
Non U.S. Corporate bonds1.5 — — 1.5 
4.4 — — 4.4 
Total marketable securities$11.5 $— $— $11.5 

The amortized cost basis and fair value of the Company's available-for-sale marketable securities, excluding Investment income receivable, at September 30, 2024, by contractual maturity, are as follows:

(Millions of dollars)
Amortized CostFair Value
Less than 1 year$1.5 $1.5 

There was no impairment on any available-for-sale marketable securities as of September 30, 2024 or December 31, 2023.

Note 5 — Goodwill and Intangible Assets

The Company's goodwill is assigned to its Marketing segment and none of the goodwill is deductible for tax purposes.

(Millions of dollars)September 30,
2024		December 31,
2023
Goodwill$328.0 $328.0 

We amortize intangible assets subject to amortization on a straight-line basis based on the period for which the economic benefits of the asset or liability are expected to be realized. The intangible assets subject to
12

Murphy USA Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)


amortization includes pipeline space, which is being amortized over a 40-year life, and the intangible lease liability acquired from QuickChek that is being amortized over the remaining life of the underlying leases.
Intangible assets subject to amortization at September 30, 2024 and December 31, 2023 consisted of the following:

Remaining Useful Life (in years)September 30, 2024December 31, 2023
(Millions of dollars)CostNetCostNet
Intangible assets subject to amortization:
Pipeline space30.9$39.6 $30.9 $39.6 $31.7 
Intangible lease liability9.7(9.1)(6.7)(9.1)(7.3)
Total intangible assets subject to amortization30.5 24.2 30.5 24.4 
Intangible assets not subject to amortization, indefinite lives:
Trade name115.4 115.4 115.4 115.4 
Intangible assets, net of amortization$145.9 $139.6 $145.9 $139.8 

Note 6 — Long-Term Debt

Long-term debt consisted of the following:
(Millions of dollars)September 30,
2024		December 31,
2023
5.625% senior notes due 2027 (net of unamortized discount of $1.0 at September 30, 2024 and $1.3 at December 31, 2023)
$299.0 $298.7 
4.75% senior notes due 2029 (net of unamortized discount of $3.1 at September 30, 2024 and $3.6 at December 31, 2023)
496.9 496.4 
3.75% senior notes due 2031 (net of unamortized discount of $4.0 at September 30, 2024 and $4.4 at December 31, 2023)
496.0 495.6 
Term loan due 2028 (effective interest rate of 7.09% at September 30, 2024 and 7.23% at December 31, 2023) net of unamortized discount of $0.5 at September 30, 2024 and $0.6 at December 31, 2023
386.5 389.4 
Revolving credit facility, due 2026 (weighted average interest rate of 8.75% at September 30, 2024)
41.0 — 
Capitalized lease obligations, autos and equipment, due through 20263.4 3.1 
Capitalized lease obligations, buildings, due through 2059118.6 123.6 
Unamortized debt issuance costs(5.7)(7.1)
Total long-term debt1,835.7 1,799.7 
Less current maturities15.7 15.0 
Total long-term debt, net of current$1,820.0 $1,784.7 

Senior Notes

On April 25, 2017, Murphy Oil USA, Inc. ("MOUSA"), our primary operating subsidiary, issued $300 million of 5.625% Senior Notes due 2027 (the "2027 Senior Notes") under its existing shelf registration statement. The 2027 Senior Notes are fully and unconditionally guaranteed by the Company and by the Company's subsidiaries that guarantee our Credit Facilities (as defined below). The indenture governing the 2027 Senior Notes contains restrictive covenants that limit, among other things, the ability of the Company, MOUSA, and the restricted subsidiaries to incur additional indebtedness or liens, dispose of assets, make certain restricted payments or investments, enter into transactions with affiliates or merge with or into other entities.
13

Murphy USA Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)


On September 13, 2019, MOUSA, issued $500 million of 4.75% Senior Notes due 2029 (the “2029 Senior Notes”). The net proceeds from the issuance of the 2029 Senior Notes were used to fund, in part, the tender offer and redemption of a prior note issuance. The 2029 Senior Notes are fully and unconditionally guaranteed by the Company and by the Company's subsidiaries that guarantee our Credit Facilities. The indenture governing the 2029 Senior Notes contains restrictive covenants that are essentially identical to the covenants for the 2027 Senior Notes.

On January 29, 2021, MOUSA, issued $500 million of 3.75% Senior Notes due 2031 (the "2031 Senior Notes" and, together with the 2027 Senior Notes and the 2029 Senior Notes, the "Senior Notes"). The net proceeds from the issuance of the 2031 Senior Notes were used, in part, to fund the acquisition of QuickChek and other obligations related to that transaction. The 2031 Senior Notes are fully and unconditionally guaranteed by the Company and by the Company's subsidiaries that guarantee our Credit Facilities. The indenture governing the 2031 Senior Notes contains restrictive covenants that are essentially identical to the covenants for the 2027 and 2029 Senior Notes.

The Senior Notes and related guarantees rank equally with all of our and the guarantors’ existing and future senior unsecured indebtedness and effectively junior to our and the guarantors’ existing and future secured indebtedness (including indebtedness with respect to the Credit Facilities) to the extent of the value of the assets securing such indebtedness.  The Senior Notes are structurally subordinated to all of the existing and future third-party liabilities, including trade payables, of our existing and future subsidiaries that do not guarantee the notes.

Revolving Credit Facility and Term Loan

Our credit agreement consists of both a cash flow revolving credit facility and a senior secured term loan.

The credit agreement provides for a senior secured term loan in an aggregate principal amount of $400 million (the "Term Facility") (which was borrowed in full on January 29, 2021) and revolving credit commitments in an aggregate amount equal to $350 million (the "Revolving Facility", and together with the Term Facility, the "Credit Facilities"). The outstanding balance of the term loan was $387 million at September 30, 2024 and $390 million at December 31, 2023. The term loan is due January 2028, and we are required to make quarterly principal payments of $1 million, which began on July 1, 2021. As of September 30, 2024, we had $41.0 million of outstanding borrowings under the Revolving Facility and $6.2 million of outstanding letters of credit (which reduces the amount available to borrow under the Revolving Facility).

Interest payable on the Term Facility is based on either:
 
•the term overnight financing rate, plus the applicable Alternative Reference Rate Committee ("ARRC") recommended credit spread adjustment (the “Adjusted Term SOFR Rate”);

or

•the Alternate Base Rate, which is defined as the highest of (a) the rate of interest last quoted by The Wall Street Journal as the "Prime Rate", (b) the greater of the federal funds effective rate and the overnight bank funding rate determined by the Federal Reserve Bank of New York from time to time plus 0.50% per annum and (c) the one-month Adjusted Term SOFR Rate plus 1.00% per annum,

plus, (A) in the case of Adjusted Term SOFR Rate borrowings, a spread of 1.75% per annum and (B) in the case of Alternate Base Rate borrowings, a spread of 0.75% per annum.

Interest payable on the Revolving Facility is based on either:
 
•the term secured overnight financing rate, plus 0.10% credit spread adjustment for all interest periods (the "Adjusted SOFR Rate"), which is subject to a 0.0% floor;

or

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Murphy USA Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)


•the Alternate Base Rate, which is defined as the highest of (a) the rate of interest last quoted by The Wall Street Journal as the "Prime Rate", (b) the greater of the federal funds effective rate and the overnight bank funding rate determined by the Federal Reserve Bank of New York from time to time plus 0.50% per annum and (c) the one-month Adjusted SOFR Rate plus 1.00% per annum,

plus, (A) in the case of Adjusted SOFR Rate borrowings, a spread of 1.75% to 2.25% per annum depending on a total debt to EBITDA ratio and (B) in the case of Alternate Base Rate borrowings, spreads ranging from 0.75% to 1.25% per annum depending on a total debt to EBITDA ratio.

The Term Facility amortizes in quarterly installments, which commenced on July 1, 2021, at a rate of 1.00% per annum. Murphy USA is also required to prepay the Term Facility with a portion of its excess cash flow, a portion of the net cash proceeds of certain asset sales and casualty events (subject to certain reinvestment rights) and the net cash proceeds of issuances of indebtedness not permitted under the Credit Agreement. The credit agreement allows Murphy USA to prepay, in whole or in part, the Term Facility outstanding thereunder, together with any accrued and unpaid interest, with prior notice but without premium or penalty other than breakage and redeployment costs.

The credit agreement contains certain covenants that limit, among other things, the ability of the Company and certain of its subsidiaries to incur additional indebtedness or liens, to make certain investments, to enter into sale-leaseback transactions, to make certain restricted payments, to enter into consolidations, mergers or sales of material assets and other fundamental changes, to transact with affiliates, to enter into agreements restricting the ability of subsidiaries to incur liens or pay dividends, or to make certain accounting changes. The Revolving Facility credit agreement also imposes total leverage ratio and secured net leverage ratio financial maintenance covenants which are tested quarterly. Pursuant to the total leverage ratio financial maintenance covenant, the Company must maintain a total leverage ratio of not more than 5.0 to 1.0 with an ability in certain circumstances to temporarily increase that limit to 5.5 to 1.0 and a maximum secured net leverage ratio of not more than 3.75 to 1.0 with an ability in certain circumstances to temporarily increase that limit to 4.25 to 1.0. The Credit Agreement also contains customary events of default.

Pursuant to the credit agreement's covenant limiting certain restricted payments, certain payments in respect of our equity interests, including dividends, when the total leverage ratio, calculated on a pro forma basis, is greater than 3.0 to 1.0 could be limited. At September 30, 2024, our total leverage ratio was 1.79 to 1.0 which meant our ability at that date to make restricted payments was not limited. If our total leverage ratio, on a pro forma basis, exceeds 3.0 to 1.0, any restricted payments made following that time until the ratio is once again, on a pro forma basis, below 3.0 to 1.0 would be limited by the covenant, which contains certain exceptions, including an ability to make restricted payments in cash in an aggregate amount not to exceed the greater of $117.6 million or 4.50% of consolidated net tangible assets over the life of the credit agreement.

All obligations under the credit agreement are guaranteed by Murphy USA and the subsidiary guarantors party thereto, and all obligations under the credit agreement, including the guarantees of those obligations, are secured by certain assets of Murphy USA, Murphy Oil USA, Inc. and the guarantors party to the guarantee and collateral agreement in respect thereof.

Note 7 — Asset Retirement Obligations (ARO)

The majority of the ARO recognized by the Company at September 30, 2024 and December 31, 2023 is related to the estimated costs to dismantle and abandon certain of its retail gasoline stores. The Company has not recorded an ARO for certain of its marketing assets because sufficient information is presently not available to estimate a range of potential settlement dates for the obligation. These assets are consistently being upgraded and are expected to be operational into the foreseeable future. In these cases, the obligation will be initially recognized in the period in which sufficient information exists to estimate the obligation.
15

Murphy USA Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)


A reconciliation of the beginning and ending aggregate carrying amount of the ARO is shown in the following table.
 
(Millions of dollars)September 30,
2024		December 31,
2023
Balance at beginning of period$46.1 $43.3 
Accretion expense2.4 3.0 
Settlements of liabilities(2.9)(3.1)
Liabilities incurred1.8 2.9 
Balance at end of period$47.4 $46.1 
 
The estimation of future ARO is based on a number of assumptions requiring professional judgment. The Company cannot predict the type of revisions to these assumptions that may be required in future periods due to the lack of availability of additional information.

Note 8 — Income Taxes
 
The effective tax rate is calculated as the amount of income tax expense (benefit) divided by income before income tax expense (benefit). For the three and nine months ended September 30, 2024 and 2023, the Company’s approximate effective tax rates were as follows:

 20242023
Three Months Ended September 30,24.9%24.9%
Nine Months Ended September 30,24.0%24.4%

In the nine months ended September 30, 2024, the Company recognized approximately $4.7 million of excess tax benefits related to stock compensation for employees and $0.3 million in other discrete tax benefits. For the nine months ended September 30, 2023, the Company recognized approximately $2.5 million of excess tax benefits related to stock compensation for employees and $0.5 million in other discrete tax benefits.
 
As of September 30, 2024, the earliest year remaining open for Federal audits and/or settlement is 2020 and for state audits and/or settlement is 2019.  Although the Company believes that recorded liabilities for unsettled issues are adequate, additional gains or losses could occur in future periods from resolution of outstanding unsettled matters.

Note 9 — Incentive Plans

Equity Awards

The MUSA 2013 Plan authorized the Executive Compensation Committee of our Board of Directors (“the Committee”) to grant non-qualified or incentive stock options, stock appreciation rights, stock awards (including restricted stock and restricted stock unit awards), dividend equivalent units, cash awards, and performance awards to our employees. No more than 5.5 million shares of MUSA common stock may be delivered under the MUSA 2013 Plan and no more than 1 million shares of common stock may be awarded to any one employee, subject to adjustment for changes in capitalization. The maximum cash amount payable pursuant to any “performance-based” award to any participant in any calendar year is $5.0 million.

On May 4, 2023, the 2023 Omnibus Incentive Compensation Plan (the "MUSA 2023 Plan") was approved by the Company's shareholders and became effective for all future grants for both employees and directors. The MUSA 2023 Plan replaced the MUSA 2013 Plan and the 2013 Directors Plan, each of which expired on August 8, 2023. The MUSA 2023 Plan authorizes the Executive Compensation Committee of our Board of Directors (“the Committee”) to grant to non-employee directors, employees, and consultants of the Company, or any of its subsidiaries, stock options (incentive stock options ("ISOs") and nonqualified stock options ("NQSO")), stock appreciation rights ("SARs"), restricted stock, restricted stock units ("RSUs"), performance awards or other cash-
16

Murphy USA Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)


based awards and other stock-based awards. The maximum number of shares available for issuance under the MUSA 2023 Plan shall not exceed in the aggregate 1.725 million shares (subject to certain adjustments).

Beginning with its initial quarterly dividend in December 2020, the Company issued dividend equivalent units ("DEUs") on all outstanding, unvested equity awards (except stock options) in an amount commensurate with regular quarterly dividends paid on common stock. The terms of the DEUs mirror the underlying awards and will only vest if the related award vests. DEUs issued are included with grants in each respective table as applicable.
 
STOCK OPTIONS – The Committee fixes the option price of each option granted at no less than fair market value ("FMV") on the date of the grant and fixes the option term at no more than 7 years from such date. Most of the nonqualified stock options granted in 2024 to certain employees by the Committee were granted in February 2024.  The Black-Scholes valuation for these awards was $133.91 per option.

Assumptions used to value awards:
Dividend yield0.42 %
Expected volatility32.9 %
Risk-free interest rate4.3 %
Expected life (years)4.8
Stock price at valuation date$391.54

Changes in options outstanding for Company employees during the period from December 31, 2023 to September 30, 2024 are presented in the following table:

OptionsNumber of SharesWeighted Average Exercise PriceWeighted Average Remaining Contractual Term (Years)Aggregate Intrinsic Value (Millions of Dollars)
Outstanding at December 31, 2023291,050 $139.07 
Granted33,010 $393.03 
Exercised(46,210)$87.28 
Forfeited(2,350)$219.10 
Outstanding at September 30, 2024
275,500 $177.51 3.7$86.9 
Exercisable at September 30, 2024
179,965 $120.04 2.8$67.1 

RESTRICTED STOCK UNITS – The Committee has granted time-based RSUs as part of the compensation plan for its executives and certain other employees since its inception. The awards granted in the current year were under the MUSA 2023 Plan, are valued at the grant date fair value, and vest over three years. The Committee has also granted time based RSUs to the non-employee directors of the Company as part of their overall compensation package for being a member of the Board of Directors, which vest at the end of one year. For annual equity grants to non-employee directors, the directors may elect to defer receipt of their vested RSUs until their service ends. These RSUs are included in the RSU table below, will vest in one year, and will thereafter become deferred stock units.
17

Murphy USA Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)


Changes in RSUs outstanding during the period from December 31, 2023 to September 30, 2024 are presented in the following table:

RSUs Number of unitsWeighted Average Grant Date Fair ValueTotal Fair Value (Millions of Dollars)
Outstanding at December 31, 2023120,800 $188.37 
Granted34,394 $405.36 
Vested and issued(49,936)$138.18 $20.4 
Forfeited(6,587)$246.09 
Outstanding at September 30, 2024
98,671 $285.18 $48.6 

DIRECTOR DEFERRED STOCK UNITS (MUSA 2023 Plan) — Non-employee directors can elect to receive their annual cash retainers in the form of Deferred Stock Units ("DSUs"). The DSUs are recognized at their fair value on the date of the grant. Director fees which are deferred into DSUs are calculated and expensed each quarter by taking fees earned during the quarter and dividing by the closing price of our common stock on the last trading day of the quarter. Each DSU represents the right to receive one share of common stock following the completion of a director's service. During the nine-month period ended September 30, 2024, we granted 565 DSUs and recorded director expense of $0.3 million related to the grants. At September 30, 2024, there were 1,568 Director DSUs vested and outstanding with an average grant date fair value of $379.46 per unit under the MUSA 2023 Plan.

PERFORMANCE-BASED RESTRICTED STOCK UNITS – The Committee has granted performance-based restricted stock units (performance units or "PSUs") to its executives and certain other employees.  In February 2024, the Committee awarded PSUs to certain employees.  Half of the PSUs vest based on a three-year return on average capital employed ("ROACE") calculation and the other half vest based on a three-year total shareholder return ("TSR") calculation that compares MUSA to a group of 17 peer companies.  The portion of the awards that vest based on TSR qualify as a market condition and must be valued using a Monte Carlo valuation model.   For the TSR portion of the awards, the fair value was determined to be $569.58 per unit.  For the ROACE portion of the awards, the valuation was based on the grant date fair value of $391.54 per unit and the number of awards will be periodically assessed to determine the probability of vesting. 

Changes in PSUs outstanding for Company employees during the period from December 31, 2023 to September 30, 2024 are presented in the following table:

Employee PSUsNumber of UnitsWeighted Average Grant Date Fair ValueTotal Fair Value (Millions of Dollars)
Outstanding at December 31, 202395,582 $212.38 
Granted60,578 $482.74 
Vested and issued(76,672)$148.38 $30.0 
Forfeited(2,170)$261.35 
Outstanding at September 30, 2024
77,318 $320.05 $38.1 

2013 Stock Plan for Non-employee Directors

Effective August 8, 2013, Murphy USA adopted the 2013 Murphy USA Stock Plan for Non-employee Directors (the “2013 Directors Plan”).  The directors for Murphy USA are compensated with a mixture of cash payments and equity-based awards.  Awards under the 2013 Directors Plan may be in the form of restricted stock, restricted stock units, dividend equivalent units, stock options, or a combination thereof.  An aggregate of 0.5 million shares of common stock was reserved for issuance of grants under the Directors Plan.
 
RESTRICTED STOCK UNITS (2013 Directors Plan) – The Committee has also granted time based RSUs to the non-employee directors of the Company as part of their overall compensation package for being a member of the
18

Murphy USA Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)


Board of Directors.  Awards prior to 2023 vest at the end of three years and those granted in 2023 vested at the end of one year.

Changes in Director RSUs outstanding for Company non-employee directors during the period from December 31, 2023 to September 30, 2024 are presented in the following table:

2013 Plan — Director RSUs Number of UnitsWeighted Average Grant Date Fair ValueTotal Fair Value (Millions of Dollars)
Outstanding at December 31, 202323,654 $180.97 
Granted27 $456.60 
Vested and issued(14,255)$170.82 $5.6 
Outstanding at September 30, 2024
9,426 $196.38 $4.6 

DEFERRED STOCK UNITS (2013 Directors Plan) — Effective January 1, 2023, non-employee directors could elect to receive their annual cash retainers in the form of DSUs. Each DSU represents the right to receive one share of common stock following the completion of a director's service. At September 30, 2024 there were 425 Director DSUs outstanding with an average grant date fair value of $258.35 per unit under the 2013 Plan.

Share-based compensation for the nine months ended September 30, 2024 and 2023, was $16.7 million and $15.8 million, respectively. There were $0.9 million in income tax benefits realized for the tax deductions from options exercised for the nine months ended September 30, 2024 and there were $0.4 million for the nine months ended September 30, 2023.

Note 10 — Financial Instruments and Risk Management
 
DERIVATIVE INSTRUMENTS — The Company makes limited use of derivative instruments to manage certain risks related to commodity prices and interest rates. The use of derivative instruments for risk management is covered by operating policies and is closely monitored by the Company’s senior management. The Company does not hold any derivatives for speculative purposes, and it does not use derivatives with leveraged or complex features. Derivative instruments are traded primarily with credit worthy major financial institutions or over national exchanges such as the New York Mercantile Exchange (“NYMEX”). For accounting purposes, the Company has not designated commodity derivative contracts as hedges, and therefore, it recognizes all gains and losses on these derivative contracts in its Consolidated Statements of Income. Certain interest rate derivative contracts were accounted for as hedges and gain or loss associated with recording the fair value of these contracts was deferred in AOCI until the anticipated transactions occurred. As of September 30, 2024, all current commodity derivative activity is immaterial.

There were $0.4 million cash deposits at September 30, 2024 and $1.0 million at December 31, 2023 related to commodity derivative contracts reported in Prepaid expenses and other current assets in the Consolidated Balance Sheets. These cash deposits have not been used to increase the reported net assets or reduce the reported net liabilities on the derivative contracts at September 30, 2024 or December 31, 2023.

Interest Rate Risks

An interest rate derivative that the Company used to effect the hedge entered into in August 2019 matured during the quarter ended September 30, 2023. The amount of pre-tax gains in accumulated other comprehensive loss that was reclassified into interest expense was $0.1 million and $0.6 million for the three and nine months ended September 30, 2023, respectively.

Note 11 — Earnings Per Share

Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted average of common shares outstanding during the period.  Diluted earnings per common share adjusts basic earnings per common share for the effects of stock options and restricted stock in the periods where such items are dilutive. 
19

Murphy USA Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)


On May 2, 2023, our Board of Directors approved a share repurchase authorization of up to $1.5 billion that expires December 31, 2028, and excludes excise tax. As of September 30, 2024, approximately $1.1 billion remained under the 2023 authorization. For the nine months ended September 30, 2024, the Company repurchased 698,855 shares of common stock for an average price of $458.46 per share including brokerage fees and excise tax. For the nine months ended September 30, 2023, 584,086 shares were repurchased for an average price of $298.12 per share and were under the 2021 repurchase authorization.
 
The following tables provide a reconciliation of basic and diluted earnings per share computations for the three and nine months ended September 30, 2024 and 2023:

 Three Months Ended
September 30,		Nine Months Ended
September 30,
(Millions of dollars, except share and per share amounts)2024202320242023
Earnings per common share:  
Net income per share - basic
Net income attributable to common stockholders$149.2 $167.7 $360.0 $406.8 
Weighted average common shares outstanding (in thousands)20,440 21,401 20,659 21,635 
Earnings per common share$7.30 $7.83 $17.43 $18.80 

Earnings per common share - assuming dilution:  
Net income per share - diluted
Net income attributable to common stockholders$149.2 $167.7 $360.0 $406.8 
Weighted average common shares outstanding (in thousands)20,440 21,401 20,659 21,635 
Common equivalent shares:  
Dilutive share-based awards295 389 310 385 
Weighted average common shares outstanding - assuming dilution
(in thousands)		20,735 21,790 20,969 22,020 
Earnings per common share assuming dilution$7.20 $7.69 $17.17 $18.47 

We have excluded from the earnings-per-share calculation certain stock options and shares that are considered to be anti-dilutive under the treasury stock method and are reported in the table below.

Three Months Ended
September 30,		Nine Months Ended
September 30,
Potentially dilutive shares excluded from the calculation as their inclusion would be anti-dilutive2024202320242023
Stock Options33,010 38,100 27,559 38,100 
RSUs10 — 3 — 
PSUs551 — 419 12,800