MUSA - Earnings call transcript Q4 2024

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Operator

Thank you for standing by. My name is [indiscernible], and I will be your conference operator for today. At this time, I would like to welcome everyone to the Murphy USA Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] I will now turn the call over to Christian Pikul, Vice President of Investor Relations. Sir, please go ahead.

Christian Pikul

Janine. Thanks, everybody. morning, Good us joining today. for Thanks some Andrew With guidance. overview West, Donnie of Executive Andrew, Officer. After Mindy the financial our Chief Operating me Smith, will Officer; XXXX an Accounting and are Chief Officer; Galagher Officer; Financial from and Clyde, Jeff, provide comments opening results Chief Galagher Chief following then up from Q&A. comments to will we And Andrew, closing some call open the forward-looking during statements in that defined of will some this made call, mind comments portion, Act including keep Private Please be the the considered as in Reform Securities Q&A the of Litigation XXXX.

be As such, variety no that actual results will assurances projections cause attained. may can occur the or A will to that be given that differ. events exist factors of these

Murphy SEC XX-Q, and update For further discussion Murphy of filings. or statements. risk duty latest Forms other revise X-K USA factors, to recent takes the please no USA forward-looking publicly any XX-K, see

provide conform accounting measures we call, performance that certain today's or not do principles may During accepted generally GAAP. also to

We to a GAAP reconcile have our that, the on press part section our of found the reported as release, over Investors I'll these with earnings the With in provided call of non-GAAP can basis Andrew. results be measures website. schedules which turn to

Andrew Clyde

across months in side impacted we impacted business, finished leading schedule also PS&W new operation. misses of there year underdelivered fuel internal said, gallons of our we which have impressive and in network Murphy for full per sales merchandise dollars bright delivered results, versus spoken of ] fourth which store margin the impact year lot we by branded XXXX, key the fourth quarter delivered great and store in to goals. performance incentive-related of spots, with margin fewer XXXX. And collective a in translated we non-nicotine too. The are reflecting with Consequently, the the to the X.X%, margins us [ the the center into prior momentum all-in targets, lower-than-expected our categories, a those on business. G&A potential QSR that store as ourselves merchandise performance because a better XXXX, we We of our some total new respectively, over growth everyone. being billion conjunction earnings challenges Thank to minimal quarter the start the in number just food the to slow accelerate disappointing to and QuickChek value product both backdrop, store with reasons. pressure of with The rising and and for and as innovate XXXX. focused year the demonstrating I'm of MUSA you, network continued a the network, earnings EBITDA the customers. Against well-supplied improving in severe XXXX, weather the prices good $X Christian, Murphy remain and the inflation of the and year come XXXX logistics in morning, off of The was laser delivered business fourth pleased markets. hindered in very Further, program, transactions with USA's of to on stores lower X.X% year, sales That X.X% sustainability overall, more performance to against of sustainable of plan base full quarter years got a grow year market due our or although relentlessly initiatives volatility serve store short across of most before. growing and challenging low pressured our own fell across

environment. margin favorable lower environment up that the historically compressed within $X.XXX supply-demand margins retail points reflecting volatility this retail price XX been year, have margins other [indiscernible] and full occurred marginal retail to while gallon, reflecting on were less to Importantly, balance impacting looking performance at structural and were basis PS&W Perhaps factors despite more for per importantly, industry more capture, the that player. favorable, less improvement a conditions in the pressures

These together, Galagher? track from to discuss high-return margin growing share performance XXXX context significant and of is XXXX supported powerful growth more stability the a core allocation remains long since guidance of our are our player our to it performance. fundamental growth in for an year in has drivers sitting. are and not store with value-creating an organic over demand Taken continued industry where strongly long-term delivered spin. I'm support to thesis of initiatives. turn accelerating business and we returns runway Galagher with persistent even which advantage capital but to investors growth our levers remains over record favorable looks The that USA and the only quarterly full the balanced going Murphy repurchase, investments remains intact, time,

Galagher Jeff

Hello, everyone, thank Andrew. you, and

additional off combination with currently reviewing new XX our elements stores start a have store highlights start performance stores in Let with X growth. our guidance. of build guided with XX us by line results XXXX, in XXXX stores. XXXX head in our and the construction, giving of completed with range stores to XX program. XXXX XX Starting we on new Since under me great opened new year-end, to industry We

As XXXX new we set store new well delivery continued our up have beyond. XX and discussed, for [indiscernible] stores we year, and up charging to pipeline in openings expect this in to increase

year. We also last completed XX raze-and-rebuild projects

XX XXXX, a we're approach more store in new higher allowed taking planning While no ensure for to activity pace XXXX, our a in more we're raze-and-rebuild projects than development. for supporting measured construction schedule

X,XXX as of Our goal to foot part highly productive new our of primary focus the adding stores long-term over decade. stores next the around remains XXX network adding square more

Full came bit lower volumes, which guidance per our XXX,XXX Turning were in to of to fuel XXX,XXX QX of X.X% pushed per a store an down basis. volume. closer year by softness the on Average to of gallons volumes gallons. XXXX in month fuel month were average volumes XXX,XXX end low store

pricing ability quarter capture were While flat a limited to deploy and to third volumes prior price November our to mentioned we as in in December October profile flat and rising share. year, call, our

late Christmas and with year-end across South were than New the Additionally, in and falling in the holiday Year's versus XXXX in expected, a softer Wednesday volumes prior the on December weather events year. Friday

opportunity remain gallons legacy volumes to stores. in flat expect format for to we declines offset the store smaller with forward, total relatively our than more older new fuel per-store high-performing Going

stores volumes coupled build prior mind, part Keep to as such, range per-store average X XXX,XXX We're of with gallons month in years. up of fuel XXX,XXX remain fuel are store the raze-and-rebuilds of prior total, we from within billion over tell XXXX. in new volumes classes XXXX from more ramp adding per In expected maturity, though, to to to up just a XXXX, productive story. gallons. more in As expect sell only fuel X.X%

in to experienced X the QuickChek but XXXX, gallons billion public total market X USA seen more volume volumes million accounts Our of nearly Highway continues when year XX% over grow. Interestingly, XXXX. gallons That that, volume Murphy to USA Murphy according our share double full to in compared gallons or Administration. fuel we than company. is growth portion operate, grown total the a only Murphy have the past of first as for XXX billion in a growth states Federal the sold decade. of total X.X% through

very execution about right us puts win to share and strong building areas industry. in So market a remain a business future excited productive the growing in as in position and the of growth. growing We that potential in compete assets to this highly we're strategy large and and our that capture means taking our

nicotine contribution quarter with prior million year, up the contribution We versus Moving merchandising results. merchandising million which $XX XXXX in in of driven up non-nicotine X.X%, to merchandise XXXX, dollars. dollars and XXXX, grew acceleration and during increase the margin and in was both X.X% generated million Fourth improvement strength $XXX in X.X% $XXX versus quarter notable respectively. absolute contribution, year-over-year fourth margin largest by

contribution projected XXXX, due merchandising year than some growth full into to slower that originally continue are the XXXX. likely was For trends to we

to value continue expect offer. customer their QuickChek fourth challenging lower markets Rewards in quarter but to seeing relaunched a results, are pressure year-over-year and and strong We business expect deliver dollars. food-led early environment the the QuickChek slightly We in competition contribution QuickChek and menu

resulting our Refi contribution X.X% XXXX. core merchandising insight driven categories, in customer However, at growth remains our total strong by in USA, dollar

We dollar around to are strength in at expect and total Murphy growth. stores that contribution XXXX continue forecasting X%

range growth million nearly with in growth we're $XXX or rate X% at midpoint, XXXX, in a we line saw $XXX of of XXXX. in together, Taken million the to the forecasting

X.X% Moving new XXXX. this of to were the low OpEx. of up of In stores toward opened end half by month in $XX,XXX our that guided range XXXX, was operating per expenses driven and larger Nearly store $XX,XXX. total to increase

across operations per team efficiencies up store. continues X.X% only to labor, which drive Our was

states. by wage in stores, format labor larger requirements minimum was Our rising investment wage and expense several driven targeted

are which outcome network most direct Looking nearly more is decision than half also to more run build our increase to dollars. they a XXXX, merchandise format OpEx average, projected can larger stores, to per-store of our contribute costly but importantly, the of again

when operating put new are However, into very target running do keep stores mind in service, rate. expense to close maturity the is that

bit -- the you at merchandise OpEx stores, ratio our years will accelerating a take see years in larger point X while merchandising which dollars new coverage Our in turns positive reach maturity. until the of these maturity, to in about contribution more merchandise the early stores. growing stores Thus, format little reach

to a our average store increase $XX,XXX metric of operating per factors, expense on X% these XXXX store to month. an month represents per Given range guidance X% $XX,XXX per

to from enhance XXXX and expenses, we was will expenses expense corporate QuickChek were a lower home performance below $XXX million by XXXX. and larger in such Andrew adjusted incentive-based in the of scale XXXX guidance and million managing to tightly versus digital normal in were with continue initiative $XXX major some down our in XXXX, driven additional earlier, moving while incurred as our making These and driving fees a XXXX, investments Now most projects our reduction transformation leverage XXXX. Remember, transformative $XXX to teams. and component return technology compensation, professional capability In X.X% mentioned which SG&A as wound to to investments down rewards efficiency cost. we and expect XXXX results associated million. of range office would

As we incremental in a ramp up to we our such, investors $XXX $XXX we're ensuring deliver to million forecasting as value store million range of growth. SG&A.,

on Finally, spending. million the came million million call. $XXX spending above million, XXXX provided within original revised in $XXX of range guided $XXX third Total million, to $XXX range over to capital quarter in just capital our to at our of but $XXX

this of start a increase Importantly, on of activity. acceleration to us is construction new to XXXX a allowing attributable store all growth, get head purposeful

total program Our of look capital similar of range to $XXX will in million. allocated $XXX terms XXXX growth, resulting for in guided million a

this progress pipeline store which new along remains more EBITDA XXXX and deliver more will in-service both spend as good curve. their in capital XXXX stores The in ramp growth Importantly, new stores and X-year year, shape, maturity run rate million at each achieving to sustainable around and we're EBITDA million a roughly new making steady incremental XX $XX progress of annually. toward should deliver of stores $XX

repurchased share to in release, Now before cash shares the cash as turn we share any and $XXX.X impact year-end year of allocation a for which have The number back our our in shares on of at the XXX,XXX and outstanding power equivalents XX% shares and of our it we resulting share meaning I bought the for million, we in balance of shares, amount XX continued spin. of earnings factors, Andrew, QX. important, XXX,XXX the year-end. full of purchased XXXX repurchase strategy of balanced approximately our one We most year $XX and nearly the capital depend tons back since is of total and in The mentioned around a million million a exact will are our in price. reflected given shares count

we a result in continue cash in years. EPS future free to executing year generation, accretion intend and which balanced capital our strategy, of that benefit Given repurchase in allocation both meaningful preserving the all flow

ongoing grow strong we the it that, forward, will net with And to Andrew. going impact back our to be shareholder value underscoring income, over compounded I'll creation. turn As accretion commitment

Andrew Clyde

business, industry subject our our forecast In you, power investors closing, Thank beliefs of earnings around fuel of can of view is Galagher. to representative the expectations. of their we will and range own custom, the which as margins the provide a

few limited quarter range As has range margins likely call, $X.XX $X.XX price a most gallon referenced past volatility we per what third the all-in normal the environment, and the to and with in the call one stable moderated dynamics on we years. for supply

gallon. higher easiest we saw XX challenged continue basis mechanism retailers pass as the pressure their in to do to steeply events retailers time. the represents structural a conditions. And and believe reminder, XXXX, to only marginal saw from highly approaching higher that XXXX benefits per falling every to over expect high benign overall dynamic expect we to in experienced we result of from environment. continue $X.XX X the as once in-store remain level market, a to that's a would we saw of this expect XXXX, $X.XX where margins As fuel will gallon equilibrium those Within margins costs, can our supply normal somewhat tighter environment the pass-through neither a price $X would to a framework, years. and on costs from higher to price performance retail efficient This we we and most in points. leading continue range upward absolute strong a margins belief resulted change we might in with up as is in a almost see $X.XX in Coupled X concurrence a In such, we for on unlikely tighter margins way

So ranges, EBITDA of we all-in respectively. $X an $X.XX [ other of of expect $X.XXX ] in would XXXX, $X.XXX billion using billion guided margin all per to the gallon, at to midpoint range

last We volumes The QuickChek going preliminary in well. difference component stores; have would better from of XX% XXXX of our impacting but a stated close comments and each A underway primarily portfolio is year, talked to the was as as that mentioned. initiatives of the fuel of generate disruptive, as prior margin QX two weather volumes while trending results. I'll stores, all-in fuel prior as the in hundred impacted about Headwinds Enzo, potential by per-store compared the with $X.XX key that $X.XX ramp strong years merch in by our over impact last the factors: about year billion plan. resulting We of resulted storms offsetting nothing currently than the the in across maturity X-year that margins new shy delivering X little network. are out closures openings performance. at bit levels, is are approximated our lower and our named month, That a $X performance several past and being forward evidenced which to store to from [indiscernible] EBITDA. higher internal likely coming Galagher on earnings some January January making factor downtime about environment, said, delayed retail business largely of January, contribution and our in

number results, of the but is many and closures As of merchandise an which to results view face and tenacity of you data associates with preliminary the our proximity in on January also challenges. can imagine, store had spirit the business a plan, a the store close to impact so internal huge says performed managers who admirably in testament

for So work our hard I thank dedication your you and customers. again continued to all

to a noteworthy prepared our we remarks, do share to our As million think we reducing that point it's count essentially conclude have hit I out about milestone, major shares. XX

but of factors, well capital function our repurchased Accordingly, into deliver growth EPS X several represents shares of the future. X% million simple As the shares Galagher corresponding balanced powerful, a float. TSR number is of the the allocation the to highlights approach exact next noted, double-digit is positioned well and math

to Let's the now and to it Q&A. call turn open operator, the we'll up back

Operator

[Operator the Our question Bobby line Griffin Instructions] from first Raymond from of James. comes

Unknown Analyst

[indiscernible]. is This

positive in in that or on Murphy's the the back to positive it a flip driven I to performance touch Was QuickChek just non-nicotine drove the category. change category First, stores? by What wanted brand quarter? at

Andrew Clyde

performed beer of up Package were a we So a high salty number sales, single the digits. growth our categories, saw Murphy I Bridge, well. stores very candy, double-digit mean in snacks

QX as not last at expectations And made as We performance sales. QC as But strength attribute or that of And difference on we performed floated to food some same-store our there. year. half second as we So lot the initiatives. also side, and really a digital in about the certainly, the believe QX, well talked look, from in look well the ended initiatives we really, our strong transformation. year saw we well really we planned. beverage when a

Unknown Analyst

margins sales. employed on despite et of promotional category what declined price are you XXXX and cost XQ cetera? a helpful. And through and you any from puts in cadence QSR some better us of that That's takes year-over-year in the then the non-nicotine pressures, whether that's pressure, the gross walk assuming Can the Okay. And and promotional outlook?

Andrew Clyde

Sure.

how one growth So the gaps we and sales lottery. and big between of rate the impact lotto growth of the margin is rate the report

the be going there driver those. between that's so to And biggest

of of component In of cadence, tobacco a see promotional the terms firms different. spend. kind the Certainly, not to large our do we expect anything represent materially

to function a change what beverage continue major on some are say this price our so their et bundles, do a throughout stage, breakfast $X.XX lot sure impact of of to at have not how for continue the would QuickChek, would say well. a QSRs, expect attractive and at our sustaining we And important we throughout the objectives cetera, side I that X-inch see see But be promotional that a do initiatives sales. to at some is, been and diversification sustainable as business don't QSR and point, but or We their food variance cadence. those and XXXX, an for I that traffic have that our according could underpins subs earnings of but of something the expect potential we they value in we the also highly fact the have high don't have is markets. fuels broadly XXXX

Operator

from John Our next question comes from of the JPMorgan. line Royall

John Royall

question the buyback. first on my is So

about. talked for and up to 'XX. the on sheet with near million more willingness of question business stick My that year, that to balance consistent let in commitment maybe downside case per leverage shares a that you've X level at is to somewhere pretty been your the float pace You've which keeping is

Just about environment in how how understand cents fuel you to think but in you sheet of it. the margin, trying is the base lose we couple a understand where buyback to I versus your trying of think of just an know hypothetically, say, I balance which case,

Andrew Clyde

What good I question. to really capital a would That's we're approach. Sure. allocation is say balanced committed XX-XX the

So to about plan. you to would we're on, up it allocation capital or that how is I shares take XX-XX think leveraging any we buy not maintain a back leveraging leverage

has business of We the have levered to earnings from time as time up the grown. power

below is Our leverage well rate now Xx.

So that's to we do. can always look something that

year, is volatility commitment. all to of not a business on that greatest years better. right? one note of is just This capital earnings that what that's the the our the margin business. built things that about do X things allocation environment. for we factor cycles, can framework rightly in the You out fuel any clearly next as in our of the win but and with to plan, business single maintain win Board X coming We our can volatility to we All establish we in focus our the the the making And lay are is we

saw $X.XX I were and year. And like than than lower mean, environment this lot longer fuel was looser margins expectations. we did because so last a honestly, our if ourselves we our the expectations

$X.XX miss expectation, honestly, versus was a it and we So didn't down our beat.

little that hope color I commitment behind there. our a and provides context So

John Royall

CapEx But I let a Andrew. does, third is quarter million. $XXX a to you I am. guide 'XX then I had million to me and similar level to if here, expect you in the It level second misinterpreting XXXX. had and on the then raised on please similar for something my call, -- CapEx think And And $XXX question know perhaps

and of 'XX lower in the ended You actually at up end range 'XX. in low that

between more CapEx Can So about I'm this than you years. if it, looks and in the it talk year something maybe some moving X next, coming both activity just lower interpreting the like correct?

Galagher Jeff

I'll bit the Galagher. take in for quickly. that is that this And guided our we uncertainty There's a little opening one John, stores. schedules range. of

million our deliver $XXX could a December. number, was to stores we really in million $XXX assuming full the of potential So

in a into and to slips flat. openings We're switch XXXX. XXXX. going hit XXXX. in the relatively rebuilds that shifting in of in We planning Some raise XXXX, difference be growth XXX from you XXXX. more is XXX And store more see We're new to and around organic

Operator

from RBC Irene the of next Capital Our comes from Nattel line question Markets.

Irene Nattel

are at rates what wondering consumer to you just around in and with with facing promotional in from having XXXX? as vendors this trying of also Just point kind support inflation is underlying challenged your -- everyone the a discussions XXXX, vendors around is

Andrew Clyde

detail mean really cetera. around we our very, QuickChek Yes, the and that's really them, et our fuel store great. I commercial USA that We generate. the vendors for mean we volume, for that's strong like per I volumes is represent many It's very won't value, into businesses. And any high arrangements, Murphy thing stable one that different. no baseload of just important. get

price category You that its performance that volume. benefit think mean QX. to about in the manufacturers driving the I commitment candy really from and low and strong everyday

And so type established we've that discussions. commitment over positions time of the those for well us credibility

seen digital management of part our we As and as from benefits around did initiative, initiatives have some transformation well. we have those contract

parties. discussion a like that's So to on of drive them, mutual volume a businesses retailer vendor, have given And different other is headwinds do makes way. the look and the had really both who together type philosophy really than them. a that it for value what with pressures it most win-win they a can working the for positive us they've forward of with our partners some basis And often, may we in sustainable our drive can we

Irene Nattel

helpful. year? of for very price this just underlying That's around sort inflation And expectations

Andrew Clyde

we're see initiatives elevated this elevated. meant can or is honestly, of see that higher day, to control, inflation the this they're focused really every We kind that's going kept It's win translate the all colleagues don't message do, more into if from know amount we the to key more business the We new and know discussions tariff say, some comment higher one if control see that side. certainly and probably other is continue a day. that come low-income of trade consumers for sense a our every Murphy. see and, made lot we're year inflation. higher negotiating and tell consumer. can rates decline. exact tariffs what to they despite spent and the single same of pressure we our we last and on new government really thing something our the saw month we going our that it's the I'll leadership those the team. static One of my and one in to just cycle, got of we gives those What if never labor see you year-over-year, something wild ploy else stay inflation, personally last down to per even you about We I cycle And quarter, looking cost to is what panel day is drove to therefore, loyalty a existence. into spending don't Certainly, may And delayed of on some the our on that cards

goes our we're for benefit So there it positioned hoping we're down hope is the if and certainly inflation of continued consumers. well

Galagher Jeff

to One into Murphy, Andrew's about very are the our quick now the capabilities programs in around addition rewards thing to strong. And trading comment to add that.

side, now side the the with both seeks And target on QuickChek more customer them. so Murphy can and with what resonates as the we value,

we will than in believe and price, the we environment, continue right right to at our lot inflationary [indiscernible] an about did so year know which ago we a And do product actually the our customers a business. more

Operator

the from comes line of question Tarlowe. next Corey Our

Corey Tarlowe

little your that for maybe the of these Great. rollout targeting talk about around Could be units? and new new some to curious bit planned you you are expectations get metrics for of stores? performance the your a thoughts I you the would

Andrew Clyde

Absolutely.

So how one XXXX new gallon month last XXX,XXX. year. class, The gallons standpoint. to performing NTIs by delivered merch sales industry fuel is XXX,XXX class build from margin a per store XXXX look thing at class, stores we The are the

stores. and is are disappointed stores so more you month. that. that, XXX,XXX hitting it's we within those Same the classes state, XX% not of And store still new high-performing about the really the This on why is up. to XX the on our which the sort own the so while average, about expectations side, significantly just if we're steady getting up and sales is in the ramped over ramping merchandise the side per of think Murphy up XX% in

pleased the as markets new very build really that Gallagher with about we continuing store And and We've very stores performance. we're the into. got attractive that to those putting So pipeline noted, feel up. we're good

I for we can one of 'XX, in challenges think the team 'XX 'XX. up make and now the is

'XX able that right miss the to of XXXX we Some line had be EBITDA in get to in goals. our with

Corey Tarlowe

Got very helpful. it. That's

follow-up you anything just be on where my Just and there's would SG&A, particular, with Is there think further in that's that SG&A. -- efficiency opportunity worth calling out?

Andrew Clyde

continue our the other business of to to the in from some is. year-over-year plan. and business get got technology invest make that efficiencies that are systems, also But to means need better. benefits well. in frankly, built We retire we've to our we And There as into there that that initiatives

year. And our this for the that's built into fully expectations guidance in so

Operator

comes the of from Fargo. Bonadio question from last Anthony Wells Our line

Anthony Bonadio

there in walk more Just to that the through X% contribution X% ask little minimum new detail? out wanted but easier. at environment guidance us to right can a great more be I build about Thinking you number, like compares it little detail. isn't in now, bit should through seems a just realized the

raze-and-rebuilds, support self-help. it emerging seems got NTIs, from You've like some and

those be of through helpful. would flow all how understanding just pieces So

Andrew Clyde

bit headwinds some on that. and there see a little to a drag expect We persistent of

categories. don't we those there. in really our think So first to there. in seeing call traffic the a of those members going our Nicotine stores. stores, small illicit fact that I in think from pick especially the and we'd QuickChek all of up solid always themselves of be like holding uptick and a being 'XX I volume months And highlighting that the in efforts go of amount sold QSR we in can of without Rewards one are are markets. significant product with resolved is couple see to still price significant beyond was performance preserving cases.

hitting there view in a be those you the you Department of Honestly, months, Justice ramp the products. little see hit expected But we'd So that. you're raze-and-rebuild store like far as do benefit We've illegal last enforcing cracking year NTI from conservative a down job and not number. illicit on year, got that in of the in the the on along and better merchandise prior to may of don't FDA when pushing and the achieve the kind of those year. to out months the the months year. in of of benefits expected. you number the you the those the reflects current not them it's point some wanted that year the year, when the at store next you number hit the that an course the to and store they're delay for wanted It's about so some about that within in hitting

Unknown Executive

performance would And our Andrew, that, really improving of to I we're intent network. also store add the on

be us service, dispenser to important You've heard opportunity, us customers. proof as having which initiative. right business. to And help. talk believe now a of fast over of what about after we Us slowing Obviously, our is [indiscernible] store fuel-focused is because in concept it's important our to pumps our going fuel currently productivity we're in a

the in now what So broader with to out We're really roll cost we've try market rollout. that, home what the there find a stores, of the a inform getting to both stores another concept to achieve out of resources. to right lot benefit in and XX proof a opportunities the And office? organized is a XX are to piloting ready the gaps to

$X should say, we cost overall interesting especially that we maintenance, as savings reduce out our that particular, not dispenser we identified in one it's but in annualized within only reduce which early could basis, believe really at found Now also but fact, in on I'll too value call well. And stores. cost opportunity some downtime, doable potential, to generate have over absolutely an opportunities, million it's and capture

improvement [ and we resources in but plant when has behind light operations, a So opportunities related sense I initiatives ] also SPE around or areas have going bright created it. And that really really effort the shown renewed but nothing trust Because of thorough led store this has necessarily after are practical urgency forward putting we and are if on initiative. me within yes, and else, initiative very stores of say a a this of bodacious not and bold, really underway. other lot a

So more we this. a to on but come working there, lot are really

Anthony Bonadio

Really those fell helpful. off you guys October. like running And then gallons. looks maybe gears in in pretty December where are to It November, precipitously from just switching

were actually January, slightly some in we're year and just to growth given softness gallon coming on far in more just so APSM confidence that. maybe given And what drove more 'XX? then off seeing down gallons ability So thoughts in gives drive you're the your a where what on you

Mindy West

take that Yes, I'll well. one as

holidays Looking at to Andrew midweek. allow falling a lack which us tale volume, of and did winter create fourth Also, quarter separation as volatility, of from storms really price our was mentioned, that not just competitors.

half from the the that in $X.XX overall greater that profile off really unfavorable the in than benefited price 'XX. of an the fact, fourth got we than of to quarter And year. and number and in speaking fourth the we what a for cost of we In 'XX, number gallon saw price fall was volatility prior choppy instead changes October was quarter less volatility,

were summer, those margin where of But have January, So prebuying large get capture a a last portion quarter still Northeast, crossing we in tell offset off the position in all the margins well, of can't quarter, not multiple no focus at ability February, of and down. with we benefit is year storms, for in to and of in but one volume, and unusual is as softness. XXX we as have you on above you are quarter winter but ability we volume And said, school place a come were resulting these sheltering headwinds first our of strong to We're and storms I our winter really will on little And get first January and full in heating what confident as moves the that return will leaving and I point, were the then trending the weakness postbuying gallon. controllables you at [indiscernible] industry a say confident the storms than on help stores market since today Two all. fighting controlling margin above little network $X.XX lot fact, where in well, a better served started as fuel as us. executing really winter can weak. the volume. hurricanes we would in in left year. in today, the closures. really challenges great volumes In above experience and we're the and to $X.XX those we're a that. control But said, to pressured, unlike And weather NTIs severe our look, deliver. one day we Andrew margins weather, We our rather and stream help

Operator

Q&A I Clyde to remarks. turn closing now Andrew back our for the call our session. That concludes CEO, will Mr.

Andrew Clyde

thank Well, Great. you in. all tuning for

we we support. behind you things to XXXX initiatives and you for of to the Thank appreciate at NDRs updating exciting I conferences look to and As year in, always lot well. and look And at tuning XXXX. as our across a us, the your forward put in have forward

Murphy USA (MUSA) 6 Feb 252024 Q4 Earnings call transcript