Murphy USA Inc. on Wednesday reported a 5 percent jump in fourth-quarter profit for 2014.
The El Dorado-based company had a net income of $98.3 million for the quarter, up from $93.6 million a year ago.
Earnings per share for the period that ended Dec. 31 was $2.13, compared with $2 in the fourth quarter of 2013.
The company was helped in the quarter by an after-tax benefit of $6 million from a legal settlement and $9.8 million in benefits related to tax contingencies and other matters.
Murphy USA said higher profits from both fuel and merchandise sales drove the favorable financial results.
The company said it sold 1.04 billion gallons of fuel in the quarter, an increase of 7.5 percent from the year-ago quarter.
"A significant decline in wholesale prices was the primary driver behind the improved results," the company said in its release.
Benjamin Brownlow, an analyst with Raymond James & Associates, said before Murphy USA released its quarterly earnings that he expected the company would see a lift in earnings from the recent drop in oil prices, because they would "drive higher fuel profits."
Crude prices have dropped more than 50 percent since June as a result of declining global demand and abundant supply.
"The fourth quarter topped off an outstanding first year as a standalone company," Andrew Clyde, president and chief executive officer, said in a statement.
Murphy USA separated from Murphy Oil Corp. and became its own public company in 2013.
"We set and achieved ambitious goals for the year around site growth, merchandise and fuel margin expansion, and cost leadership," Clyde said. "We look forward to continuing our performance and execution track record in 2015 and returning additional value to our shareholders."
Shares of Murphy USA rose 1.1 percent to close Wednesday at $71.07 on the New York Stock Exchange. The company reported its financial results after markets closed.
Murphy USA reported $3.6 billion in revenue, down from $4.2 billion during the same quarter in 2013.
The company opened 24 retail locations in the fourth quarter and 60 during the year. Murphy USA now has 1,263 locations.
Murphy USA will hold a conference call today at 10 a.m. to discuss its financial results. The call can be accessed dialing (877) 291-1367 and using call number 61597044 or online at ir.corporate.murphyusa.com.
Business on 02/05/2015