Murphy USA Inc. (MUSA) 2017 Jefferies Consumer Conference Nantucket, MA • June 20, 2017 Murphy USA Inc. 1
Cautionary Statement This presentation contains forward-looking statements. These statements, which express management’s current views concerning future events or results, are subject to inherent risks and uncertainties. Factors that could cause actual results to differ materially from those expressed or implied in our forward-looking statements include, but are not limited to, the volatility and level of crude oil and gasoline prices, the pace and success of our expansion plan, our relationship with Walmart, political and regulatory uncertainty, uncontrollable natural hazards, adverse market conditions or tax consequences, among other things. For further discussion of risk factors, see “Risk Factors” in the Murphy USA registration statement on our latest form 10-K. Murphy USA undertakes no duty to publicly update or revise any forward-looking statements. The Murphy USA financial information in this presentation is derived from the audited and unaudited combined financial statements of Murphy USA, Inc. for the years ended December 31, 2016 2015, 2014, 2013, and 2012. Please reference our latest 10-K, 10-Q, and 8-K filings for the latest information. This presentation also contains non-GAAP financial measures. We have provided a reconciliation of such non-GAAP financial measures to the most directly comparable measures prepared in accordance with U.S. GAAP in the Appendix to this presentation. Christian Pikul, CFA Joe Van Cavage, CFA Director, Investor Relations Investor Relations Analyst Office: 870-875-7683 Office: 870-875-7522 christian.pikul@murphyusa.com joe.vancavage@murphyusa.com Murphy USA Inc. 2
Murphy USA continues its proven and differentiated strategy MUSA Relative Stock Performance • Murphy USA is uniquely positioned as a Indexed From Spinoff to June 16, 2017 low-cost fuel and convenience retailer 200 • Our strategy to compete has five coherent Murphy USA Inc. elements: S&P 500 Index – Grow Organically S&P 400 Midcap Index 183 – Diversify Merchandise Mix 175 – Sustain Cost Leadership Position – Create Advantage from Market Volatility 160 – Invest for the Long-Term 155 150 • Our business model is resilient to, and takes advantage of, volatile market conditions • Our independent growth plan combines 125 efficient unit-growth and shareholder-friendly capital allocations • Murphy USA has a proven track record of execution since our 2013 spin-off 100 Spin Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 • We have a very bright future ahead Murphy USA Inc. 3
MUSA creates value through a simple formula—and executes MUSA Value Creation Drivers 2016 Proof Point Details • 67 new sites Organic 5% unit growth • 10 Raze-and-Rebuilds Growth • 300 refresh; 180 super coolers * • +1.7% volume growth Fuel 5% all-in contribution • 15.4 cpg total margin growth Contribution • 3.8 cpg from PS&W + RINs + • +120 bps merchandise margins Fuel Improved by 0.9-cpg to EPS Growth • +11.2% merchandise contribution 1.6-cpg Breakeven • -4.1% site opex* APSM - EPS increased 39% to $5.59 • $6.6 million decline in total SG&A Corporate SG&A** per- • Investment in people, capabilities store down 10% Costs • Tax-efficient non-core asset sale / 4.9M shares • $323 million share repurchases Shares repurchased • $201 million growth capital Outstanding (11% of float) • $38 million in sustaining capital *Site Opex excludes credit card fees **SG&A per-store excludes stock-based compensation Murphy USA Inc. 4
Organic Growth Express growth, rebuilds continue in Independent Growth Plan Estimated Store Activity 2015 - 2019 74 77 Raze & Rebuild 70 70 70 1 10 New Stores 20 Up to 20 Up to 20 73 67 45 to 50 Up to 50 Up to 50 2015a 2016a 2017e 2018e 2019e Total Units 1,335 1,401 1,451 1,501 1,551 Express Growth 17 25 42 50 50 USA Growth 56 42 8 0 0 Raze & Rebuild 1 10 20 20 20 Murphy USA Inc. 5
Organic Growth Refresh and super cooler programs enhance network quality Before After Refresh Program • Refresh Program initiated to revitalize aging sites • In addition to updating and standardizing the look and feel of our stores, the program helps increase customer retention and lowers maintenance costs • Refreshed 300 stores each in 2015 and 2016 with plans to continue at that pace in 2017 • Focus shifts to standardized maintenance activities across network after program completes in 2017 Super Coolers Super Coolers Previous Coolers • Super Coolers enhance the beverage offering outside the kiosk through increased shelf space for higher margin non-CSD products. • By year-end 2017, we will complete the 3-door super cooler opportunity through installations at 80% of our kiosk network (610 locations) • Opportunity still remains for 2-door super coolers at 115 additional kiosks Murphy USA Inc. 6
Fuel Contribution Fuel margins reside within a historical range of 14 to 16 cpg MUSA Total Fuel Margin CPG • We expect to earn 14 to 16 cpg in total 18.5 fuel contribution from our combined retail and PS&W plus RIN sources 16.4 2.7 12.5 - 15.4 16.0 15.0 14.9 14.4 3.4 • MUSA’s total fuel margin has come within 14.0 1.5 2.4 3.8 or above the expected range each of the last 5 fiscal years CPG • We revised 2017 margin guidance down from our expected annual range after Q1 12.9 13.0 15.8 12.5 11.6 - Adverse supply conditions pressured rack prices - Regulatory and political uncertainty caused RIN prices to decline without $496 $515 $631 $486 $491 offsetting spot-to-rack adjustments 2012 2013 2014 2015 2016 2017 Guidance - Weaker Q1 fuel demand and retail (Revised) margins year-over-year - Conditions have begun to normalize on Product Supply & Wholesale + RINs LT expectations (low) all fronts in Q2 Retail LT expectations (high) Murphy USA Inc. 7
Fuel Breakeven Volatility favors our low-cost business model Total Fuel and Breakeven Margin (cpg) 2013 – 2016 Fuel Breakeven Margin (cpg) PS&W plus RIN 22.7 25 Retail Margins 20.4 20 18.5 18.7 17.9 16.4 16.7 15.4 15.5 15.4 14.9 15 14.0 14.0 13.9 13.8 12.3 10.1 CPG 10 5 3.4 2.8 2.5 1.6 0 -5 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 2013 2014 2015 2016 PS&W 3.4 2.7 2.4 3.8 5.5 7.2 1.2 -1.9 3.8 5.0 -0.2 1.5 2.9 5.9 1.8 4.8 0.0 + RIN Retail 13.0 15.8 12.5 11.6 6.8 13.2 17.5 24.6 10.0 9.0 18.1 12.4 11.1 10.8 13.7 10.6 10.1 Margin Murphy USA Inc. 8
Fuel Breakeven MUSA’s in-store metrics buck industry trends Cumulative Growth in Cumulative Growth in Industry Metrics (APSM) MUSA Metrics (APSM) 2014 - 2016 2014 - 2016 21.5% (6.3%) contraction 13.1% 15.2% 9.1% 7.0% 6.5% +16.3% Data Not expansion Available 2.5% 1.4% 0.9% 2014 2015 2016 -3.2% 2014 2015 2016 Merchandise Profit (Industry) Merchandise Profit (MUSA) Site Opex Excluding Payment Fees (Industry) Site Opex Excluding Payment Fees (MUSA) Murphy USA Inc. 9
Corporate Costs SG&A investments enhance capabilities and scalability Total SG&A ($MM) • People 2014 – 2017e – Establish competencies to achieve corporate goals and strategies 138 – Align incentive plans with principles and 129 competencies 123 119 – Empower leadership to drive change and support value creation process • Process – Restructured corporate functions to support strategy execution – Establish process framework vs. break/fix cycle – Proactively manage enterprise risk across the organization • Technology 2014 2015 2016 2017e – Develop IT strategy and roadmap to manage business priorities and replace patchwork legacy SG&A per Store* (K) systems 2014 – 2017e – Invest in scalable and secure technology 94 97 88 95 platforms – Upgrade capabilities in line with major retailing standards *Using end-of-year store count Murphy USA Inc. 10
Shares Outstanding Capital allocation balances growth and capital returns Capital Allocation ($MM) Capital Allocation 2014 - 2016 2014 - 2016 $1,242 Retail Growth Capital $587 $623 39% $464 $323 50% $248 $191 $619 $52 7% $264 Share 4% $216 Retail Repurchases $139 Maintenance Corporate Capital Capital 2014 2015 2016 3-Year Total Share Repurchases Capital Expenditures Murphy USA Inc. 11
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