Murphy USA (MUSA) 47th Annual Raymond James Institutional Investor Conference summary

Industry overview and growth trends

• Operates as the fourth largest convenience store retailer in a fragmented, growing market serving 160 million daily customers and over 1,800 locations across nearly 27 states, with significant consolidation opportunities.

• Population and store growth are shifting to the Southeast and Southwest, aligning with expansion strategy.

• High trip frequency and customer loyalty are driven by non-discretionary product offerings.

• In-store sales contribute about 64% of revenue and nearly 50% of margin, with larger stores focusing on higher-margin products.

• Competition is increasing, especially in Texas, Florida, Colorado, and North Carolina, with approximately 600 new stores opening within 3 miles since 2020, but market normalization favors established players.

Strategic pillars and operational focus

• Strategic framework centers on organic growth, merchandise diversification, cost leadership, leveraging market volatility, and long-term investment, with five core pillars unchanged.

• Accelerating new store growth post-COVID, targeting 45–55 new stores per year and 34% square footage growth, with store count projected to reach ~2,050 by 2030.

• Focus on high-performing assets that meet return expectations and broaden customer offerings.

• Merchandise mix diversification and food/beverage optimization are ongoing priorities, with a shift toward non-nicotine and food & beverage offerings.

• Sustained cost discipline through operational efficiency, digital transformation, technology investments, and labor optimization.

Store performance, investments, and brand refresh

• New stores built from 2021-2023 outperform pro forma expectations, delivering higher merchandise and fuel contributions, with ROIC ramping up over three years.

• Larger stores drive higher operating expenses but also higher EBITDA and margin contributions, with 2025 OpEx up 5.8% year-over-year.

• Brand refresh with a modern, cost-neutral design to enhance customer experience and store appeal.

• Investments in store maintenance, lifecycle management, and self-maintenance have reduced costs and downtime.

• Loyalty programs delivered over $500 million in customer savings last year, supporting traffic and basket growth.