Murphy USA Inc. (NYSE: MUSA) reported Q4 EPS of $2.38, $0.02 better than the analyst estimate of $2.36. Revenue for the quarter came in at $3.5 billion versus the consensus estimate of $3.5 billion.

• Net income was $77.5 million, or $2.38 per diluted share, in Q4 2018 compared to net income of $124.8 million, or $3.58 per diluted share, in Q4 2017. The 2017 fourth quarter included a deferred tax benefit of $88.9 million as a result of the enactment of the Tax Cuts and Jobs Act in December 2017, which increased net income. For the full year, net income was $213.6 million, or $6.48 per diluted share, compared to 2017 net income of $245.3 million, or $6.78 per diluted share. Included in net income for 2018 was approximately $35.3 million (after tax) from settlement of damages incurred in connection with the 2010 Deepwater Horizon oil spill.
• Total fuel contribution (retail fuel margin plus product supply and wholesale ("PS&W") results including RINs) for Q4 2018 was 20.0 cpg compared to 16.5 cpg in Q4 2017. For the full year, total fuel contribution was 16.2 cpg in 2018 compared to 16.4 cpg in 2017.
• Total retail gallons increased 4.8% to 1.1 billion gallons for the network during Q4 2018 while volumes on a same store sales ("SSS") basis increased 2.1% versus prior year quarter. For the full year, total retail gallons increased 2.2% to 4.2 billion gallons, while SSS volumes had a slight decline of 0.6%.
• Merchandise contribution dollars grew 5.2% during the quarter to $102.1 million on average unit margins of 16.6%, up 30 basis points from 16.3% in Q4 of 2017. For the full year, merchandise contribution dollars were up 5.0% to $400.4 million on average unit margins of 16.5%, a 40 basis point increase versus 2017.
• During Q4 2018, 11 new stores opened and 15 raze-and-rebuild sites re-opened. For the full year, 26 new stores were opened and in addition, 27 raze-and-rebuild locations re-opened. The year-end store count was 1,472.
• Effective income tax rate was 22.9% in Q4 2018, compared to a tax benefit of 143.9% in Q4 2017. The 2017 benefit was due primarily to the recognition in Q4 2017 of Federal tax reform benefits. For the full year, the effective rate for 2018 was 22.0% versus a tax benefit of 2.2% in 2017.

"We finished 2018 strong, as a favorable fourth quarter fuel margin environment resulted in $411.8 million of annual Adjusted EBITDA, just below the midpoint of our guidance," said President and CEO Andrew Clyde. "We drove traffic to our stores in the fourth quarter, growing per store volumes and generating the second strongest fourth quarter fuel contribution since our 2013 spinoff. Merchandise capped off an outstanding year, contributing over $400 million of margin in 2018 with line of sight to further improvement in 2019. We are in the early stages of executing several transformative initiatives in 2019, including the national launch of our Murphy Drive Rewards loyalty program early in the second quarter, that will help propel the earnings potential of the company in 2020 and beyond."

For earnings history and earnings-related data on Murphy USA Inc. (MUSA) click here.