Murphy USA Inc. had a net income of $73.2 million for its second quarter of 2014, the El Dorado-based company said Wednesday.
Murphy USA also reported earnings per share of $1.57 for the quarter, beating analyst estimates of 86 cents.
The company had a net income of $77.6 million, or $1.66 per share, for the comparable period in 2013, when it was part of Murphy Oil Corp.
Wednesday's earnings report is Murphy USA's third quarterly report since separating from Murphy Oil Corp. last year.
Murphy USA brought in $4.8 billion in revenue for the period that ended June 30.
The company said its improved financial results for the quarter were driven by higher merchandise margins, improved results from its ethanol plant in Hereford, Texas, and wholesale gross margins that were offset by lower retail fuel margins.
Murphy USA also had a tax benefit of $6.8 million during the period as a result of lower state income taxes.
"The fuel margin environment wasn't extremely favorable" for Murphy USA during the second quarter, said Ben Brownlow, an analyst with Raymond James.
Retail fuel margins were 13.2 cents per gallon during the quarter, compared with 15.6 cents per gallon in the same period a year ago.
The company said it was affected in the most recent quarter by a "flat to rising wholesale price environment."
"The second quarter of the year saw us translate the execution of our strategy into financial results for our shareholders," Andrew Clyde, Murphy USA's president and chief executive officer, said in a statement.
"Merchandise gross margin dollars per site grew 2.3 percent as the results from our successful beverage promotions and rollout of new e-cigarette and vapor products more than offset the decline in cigarettes," he said. "Despite a flat fuel price environment that dampened retail fuel margins, total fuel margin dollars grew as product supply and wholesale contributed $48 million in margin."
The company said it completed a $50 million stock repurchasing program during the quarter.
Murphy USA shares rose 1.2 percent to close Wednesday at $49.56 on the New York Stock Exchange. The company released its earnings after the financial markets closed.
Murphy USA will hold a conference today at 10 a.m. to discuss its second-quarter earnings. The call can be accessed at (877) 291-1367 by using conference number 69122439. It will also be broadcast live at http://ir.corporate.murphyusa.com.
Business on 08/07/2014