Murphy USA Inc.

What they do

Murphy USA markets retail motor fuel and convenience merchandise through 1,800 stores in 27 states, of which 1,649 are branded Murphy and 151 QuickChek. The majority of Murphy-branded locations sit near Walmart stores in the Southeast, Southwest and Midwest, while QuickChek stores operate in New Jersey and New York. The company also sells fuel to unbranded wholesale customers via company-owned and third-party terminals and pipeline positions. Stores use small-format kiosks and 1,400 to 2,800 square-foot layouts intended to keep capital, maintenance and utility costs low.

Revenue drivers

• Petroleum product sales — Fuel is the largest revenue line at $5.55 billion in Q2 2026 versus $1.13 billion of merchandise sales. Total fuel contribution was $518.8 million in Q2 2026, including $124.8 million of RINs recorded in other operating revenues.
• Merchandise sales — Merchandise generated $1.13 billion of Q2 2026 revenue with $227.4 million of contribution dollars on 20.1% unit margins. The nicotine category is described as among the highest-volume performers in the industry.
• Fuel supply and wholesale — The company markets fuel to unbranded wholesale customers through terminals and pipeline positions. Total fuel supply contribution was negative $54.9 million in Q2 2026, a drag within the overall fuel contribution figure.
• QuickChek Northeast stores — The 151 QuickChek stores in New Jersey and New York form the Northeast region and carry a broader food and beverage assortment than the Murphy kiosk format. QuickChek was acquired on January 29, 2021.

Recent performance

Q2 2026 net income was $209.1 million, or $11.27 per diluted share, versus $145.6 million and $7.36 in Q2 2025. Total fuel contribution was 40.6 cpg compared with 32.0 cpg a year earlier, and retail fuel margin was 35.1 cpg versus 29.2 cpg. Total retail gallons rose 3.9% while same-store volumes rose 0.5%. Merchandise contribution dollars increased 4.0% to $227.4 million on 20.1% unit margins. Adjusted EBITDA was $377.3 million against $286.0 million in the prior-year quarter.

Strategy

The stated model is low-price, high-volume fuel retailing complemented by a focused convenience offer in a smaller store footprint than most competitors. The company is building a mix of raze-and-rebuild 1,400 square-foot stores and new-to-industry 2,800 square-foot Murphy stores, and plans to transition all Murphy Express locations to the Murphy USA brand. It collaborates with Walmart on fuel discount programs, mainly Walmart+, and uses Murphy Drive Rewards and QuickChek Rewards for targeted discounts. Capital return continues through buybacks and dividends: 143.1 thousand shares were repurchased for $76.8 million in Q2 2026 at an average price of $536.60, and the quarterly dividend was raised 28.0% year over year to $0.64 per share. In May 2026 the company issued $500 million of Senior Notes due 2034 and largely used proceeds to retire $300 million of notes due 2027 and pay down its revolver.

Risks

• Data security and privacy — The company collects large volumes of personal and card data and relies on third-party vendors, so a breach or regulatory non-compliance could damage reputation and finances.
• Operating hazards and insurance — Explosions, fires, toxic emissions and natural catastrophes are inherent to fuel retail, and not all such losses are covered by insurance.
• Fuel margin volatility — Fuel contribution of 40.6 cpg in Q2 2026 versus 32.0 cpg a year earlier shows earnings swing materially with retail fuel margins.
• Payment fee and expense inflation — Higher retail fuel prices drove payment fees that accounted for two-thirds of the Q2 2026 increase in operating expenses.

Outlook

Management said results were in line with most guided performance metrics and that market conditions support healthy retail margins. Assuming second-half all-in fuel margins average 35 cents per gallon versus 37.9 cents in the first half, the company guides to approximately $636 million of 2026 net income and approximately $1.25 billion of Adjusted EBITDA. That compares with $470.6 million of net income in 2025.