Murphy USA Inc. of El Dorado on Wednesday announced fourth-quarter net income of $66.7 million, down 32 percent from $98.3 million in the same quarter in 2014.
Diluted earnings per share were $1.58 compared to $2.13 per diluted share in the same quarter in 2014.
The publicly traded gasoline retailer (NYSE: MUSA) said income from continuing operations and adjusted EBITDA for the quarter declined as retail fuel margins moderated to more historical levels when compared to the record margins earned in the same quarter last year.
Those lower retail fuel margins were offset in part by higher total fuel volume from new store additions, higher merchandise sales and margins, and improved product supply and wholesale contributions, the company said.
Quarterly net income from continuing operations was down to $29.2 million, or 69 cents per diluted share, compared to $94.3 million, or $2.04 per diluted share, for the fourth quarter 2014.
For the full year, the company reported net income of $176.3 million compared to net income of $243.9 million in 2014.
Murphy USA said it opened 44 retail locations during the quarter, bringing its year-end store count to 1,335 locations, including 1,111 Murphy USA sites and 224 Murphy Express sites. It opened 73 stores during the year and one Murphy USA location at a Wal-Mart Neighborhood Market location closed with the real estate sold to a third party.
Pipeline Sale
Murphy USA also said it had agreed to sell its CAM pipeline system for about $85 million.
The company did not identify the buyer, but referred to it as "investment-grade" buyer.
The CAM pipeline transports crude oil from the Louisiana Offshore Oil Port to three Gulf Coast refineries, including the Meraux refinery, formerly owned by Murphy Oil Corp., also of El Dorado.
This deal is expected to close sometime in the first half of the year.
"The strategic value of the CAM system has increased significantly with the successful development of onshore oil-shale in conjunction with enhanced economics and optionality for refiners in the current price environment," President and CEO Andrew Clyde said in a news release. "We are excited to execute on our last meaningful non-core asset inherited from the spinoff in 2013, the proceeds of which will free up capital that can be used to help fund our independent growth plan, including our recently announced $500 million share repurchase program."