We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you accept our Privacy Policy and Terms of Service, revised from time to time, and you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Murphy (MUSA) Q2 Earnings Beat as Margins Go Up, Sales Miss
Read MoreHide Full Article
Motor fuel retailer Murphy USA Inc. (MUSA - Free Report) announced second-quarter 2024 earnings per share of $6.92, which beat the Zacks Consensus Estimate by a penny and came in higher than the year-ago profit of $6.02. The outperformance primarily reflects higher fuel margins.
However, Murphy USA’s operating revenues of $5.4 billion fell 2.4% year over year and missed the consensus mark by $194 million due to tepid petroleum product sales.
Revenues from petroleum product sales came in at $4.3 billion, marginally above our estimate, though down 2.5% from the second quarter of 2023. On the other hand, merchandise sales, at $1.1 billion, rose 3% year over year and came 2.6% ahead of our estimate.
MUSA’s total fuel contribution rose 6.7% year over year to $390.3 million due to margin expansion. Moreover, total fuel contribution (including retail fuel margin plus product supply and wholesale results) came in at 31.7 cents per gallon, 7.5% higher than the second quarter of 2023.
Retail fuel contribution increased 9.1% year over year to $365.2 million as margins widened to 29.7 cents per gallon from 27 cents in the corresponding period of 2023. Retail gallons edged down 0.6% from the year-ago period to 1,231.6 million in the quarter under review and missed our estimate of 1,241.8 million. Volumes on an SSS basis (or fuel gallons per store) declined 0.4% from the second quarter of 2023 to 244.3 thousand.
Contribution from Merchandise increased 4.7% to $216.5 million on higher sales and a rise in unit margins from 19.7% a year ago to 20% in the second quarter of 2024. On an SSS basis, total merchandise contribution was up 5% year over year, primarily on the back of 12.1% higher tobacco margins. Meanwhile, merchandise sales increased 3.1% on an SSS basis, again due to an increase in tobacco sales.
The Zacks Rank #3 (Hold) company’s monthly fuel gallons fell slightly from the prior-year period, though merchandise sales increased 3.3% on an average per store monthly basis.
As of Jun 30, Murphy USA — which opened three new retail locations in the quarter to take its store count to 1,736 — had cash and cash equivalents of $79.8 million and long-term debt (including lease obligations) of $1.8 billion, with a debt-to-capitalization of 68.7%.
During the quarter, MUSA bought back shares worth $107.1 million.
Some Key Refining Earnings
While we have discussed MUSA’s second-quarter results in detail, let’s see how some other refining companies have fared this earnings season.
Phillips 66 (PSX - Free Report) reported adjusted earnings per share of $2.31, which beat the Zacks Consensus Estimate of $2.12. The outperformance can be primarily attributed to record natural gas liquids (NGL) volumes in the Midstream segment and refining crude utilization hitting a five-year high. This was partially offset by higher total costs and expenses.
For the reported quarter, Phillips 66 generated $2.1 billion of net cash from operations, significantly higher than $955 million a year ago. The company’s capital expenditure and investments totaled $367 million. It paid out dividends of $485 million in the second quarter. As of Jun 30, 2024, PSX’s cash and cash equivalents were $2.4 billion. Total debt was $19.9 billion, reflecting a debt-to-capitalization of 43.4%.
Meanwhile, another refining giant — Valero Energy (VLO - Free Report) — reported second-quarter 2024 adjusted earnings of $2.71 per share, which beat the Zacks Consensus Estimate of $2.61, driven by an increase in refining throughput volumes. Adjusted operating income in the Refining segment totaled $1.2 billion, down from $2.4 billion in the year-ago quarter. The figure also missed our estimate of $2.1 billion.
Valero’s total cost of sales increased to $33.1 billion from the year-ago figure of $31.5 billion. The figure is also above our estimate of $31.3 billion, primarily due to higher material costs. The second-quarter capital investment totaled $420 million, of which $329 million was allotted for sustaining the business.
Finally, we have Marathon Petroleum’s (MPC - Free Report) second-quarter adjusted earnings per share of $4.12, which comfortably beat the Zacks Consensus Estimate of $3.04. The outperformance primarily reflects the stronger-than-expected performance of its Refining & Marketing segment. Operating income of the segment totaled $1.3 billion, surpassing the consensus mark of $1 billion.
Marathon Petroleum’s total refined product sales volumes were 3,742 thousand barrels per day (mbpd), down from 3,581 mbpd in the year-ago quarter. But throughput rose from 2,925 mbpd in the year-ago quarter to 3,065 mbpd and outperformed the Zacks Consensus Estimate of 2,968 mbpd. MPC’s operating costs per barrel decreased from $5.15 in the year-ago quarter to $4.97.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Murphy (MUSA) Q2 Earnings Beat as Margins Go Up, Sales Miss
Motor fuel retailer Murphy USA Inc. (MUSA - Free Report) announced second-quarter 2024 earnings per share of $6.92, which beat the Zacks Consensus Estimate by a penny and came in higher than the year-ago profit of $6.02. The outperformance primarily reflects higher fuel margins.
However, Murphy USA’s operating revenues of $5.4 billion fell 2.4% year over year and missed the consensus mark by $194 million due to tepid petroleum product sales.
Revenues from petroleum product sales came in at $4.3 billion, marginally above our estimate, though down 2.5% from the second quarter of 2023. On the other hand, merchandise sales, at $1.1 billion, rose 3% year over year and came 2.6% ahead of our estimate.
Murphy USA Inc. Price, Consensus and EPS Surprise
Murphy USA Inc. price-consensus-eps-surprise-chart | Murphy USA Inc. Quote
Key Takeaways
MUSA’s total fuel contribution rose 6.7% year over year to $390.3 million due to margin expansion. Moreover, total fuel contribution (including retail fuel margin plus product supply and wholesale results) came in at 31.7 cents per gallon, 7.5% higher than the second quarter of 2023.
Retail fuel contribution increased 9.1% year over year to $365.2 million as margins widened to 29.7 cents per gallon from 27 cents in the corresponding period of 2023. Retail gallons edged down 0.6% from the year-ago period to 1,231.6 million in the quarter under review and missed our estimate of 1,241.8 million. Volumes on an SSS basis (or fuel gallons per store) declined 0.4% from the second quarter of 2023 to 244.3 thousand.
Contribution from Merchandise increased 4.7% to $216.5 million on higher sales and a rise in unit margins from 19.7% a year ago to 20% in the second quarter of 2024. On an SSS basis, total merchandise contribution was up 5% year over year, primarily on the back of 12.1% higher tobacco margins. Meanwhile, merchandise sales increased 3.1% on an SSS basis, again due to an increase in tobacco sales.
The Zacks Rank #3 (Hold) company’s monthly fuel gallons fell slightly from the prior-year period, though merchandise sales increased 3.3% on an average per store monthly basis.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Balance Sheet
As of Jun 30, Murphy USA — which opened three new retail locations in the quarter to take its store count to 1,736 — had cash and cash equivalents of $79.8 million and long-term debt (including lease obligations) of $1.8 billion, with a debt-to-capitalization of 68.7%.
During the quarter, MUSA bought back shares worth $107.1 million.
Some Key Refining Earnings
While we have discussed MUSA’s second-quarter results in detail, let’s see how some other refining companies have fared this earnings season.
Phillips 66 (PSX - Free Report) reported adjusted earnings per share of $2.31, which beat the Zacks Consensus Estimate of $2.12. The outperformance can be primarily attributed to record natural gas liquids (NGL) volumes in the Midstream segment and refining crude utilization hitting a five-year high. This was partially offset by higher total costs and expenses.
For the reported quarter, Phillips 66 generated $2.1 billion of net cash from operations, significantly higher than $955 million a year ago. The company’s capital expenditure and investments totaled $367 million. It paid out dividends of $485 million in the second quarter. As of Jun 30, 2024, PSX’s cash and cash equivalents were $2.4 billion. Total debt was $19.9 billion, reflecting a debt-to-capitalization of 43.4%.
Meanwhile, another refining giant — Valero Energy (VLO - Free Report) — reported second-quarter 2024 adjusted earnings of $2.71 per share, which beat the Zacks Consensus Estimate of $2.61, driven by an increase in refining throughput volumes. Adjusted operating income in the Refining segment totaled $1.2 billion, down from $2.4 billion in the year-ago quarter. The figure also missed our estimate of $2.1 billion.
Valero’s total cost of sales increased to $33.1 billion from the year-ago figure of $31.5 billion. The figure is also above our estimate of $31.3 billion, primarily due to higher material costs. The second-quarter capital investment totaled $420 million, of which $329 million was allotted for sustaining the business.
Finally, we have Marathon Petroleum’s (MPC - Free Report) second-quarter adjusted earnings per share of $4.12, which comfortably beat the Zacks Consensus Estimate of $3.04. The outperformance primarily reflects the stronger-than-expected performance of its Refining & Marketing segment. Operating income of the segment totaled $1.3 billion, surpassing the consensus mark of $1 billion.
Marathon Petroleum’s total refined product sales volumes were 3,742 thousand barrels per day (mbpd), down from 3,581 mbpd in the year-ago quarter. But throughput rose from 2,925 mbpd in the year-ago quarter to 3,065 mbpd and outperformed the Zacks Consensus Estimate of 2,968 mbpd. MPC’s operating costs per barrel decreased from $5.15 in the year-ago quarter to $4.97.