Murphy USA Inc. (NYSE: MUSA) reported Q2 EPS of $5.73, $1.89 better than the analyst estimate of $3.84. Revenue for the quarter came in at $2.38 billion versus the consensus estimate of $2.54 billion.

Key Highlights:

• Net income was $168.9 million, or $5.73 per diluted share, in Q2 2020 compared to net income of $32.7 million, or $1.01 per diluted share, in Q2 2019
• Total fuel contribution (retail fuel margin plus product supply and wholesale ("PS&W") results including RINs) for Q2 2020 was 38.3 cpg compared to 14.7 cpg in Q2 2019
• Total retail gallons decreased 25.7% in Q2 2020 compared to Q2 2019, while volumes on a same store sales ("SSS") basis decreased 27.4%
• Merchandise contribution dollars grew 12.2% to $118.4 million compared to the prior-year quarter, on average unit margins of 15.4% in the current quarter
• During Q2 2020, 3 new stores opened and 8 raze-and-rebuild sites were re-opened. In addition, the Company divested all 9 Minnesota stores to a private company for an immaterial gain; there are 11 new sites and 6 raze-and-rebuild sites currently under construction

“Murphy USA’s record second quarter performance once again demonstrated the competitive advantages of our distinctive business model and customer positioning," said President and CEO Andrew Clyde. "Fuel margins significantly outpaced volume declines due to COVID-19 related demand destruction even as commodity prices rose sharply in May and June. As volume recovers in July to over 90-percent of prior year levels reflecting our every-day low price positioning and more favorable geographies and locations, robust fuel margins continue to generate higher than normal fuel contribution for Murphy USA. Merchandise sales and margins have kept record pace as prior and current investments in tobacco categories led to further acceleration of additional market share gains while innovation in general merchandise and recovering traffic boosted non-tobacco categories. Our outlook for the remainder of 2020 and 2021 remains very positive as the underlying structural basis for these trends further solidifies. With a strong cash position and flexible balance sheet, Murphy USA remains well positioned to accelerate its balanced strategic capital allocation priorities over the next few years, including the previously announced growth in new-to-industry sites and front-loaded share repurchase program.”

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