Murphy USA Inc. of El Dorado has announced selected preliminary financial items for the three and twelve months ended December 31.
Net income for the fourth quarter of 2020 is expected to be approximately $61 million driven primarily by total fuel contribution of 19.8 cpg and other factors such as continued strength in merchandise margin contribution trends.
Adjusted EBITDA for the quarter is expected to be $136.3 million and lead to overall full year Adjusted EBITDA of $722.7 million. As previously announced, the company opened its 1,500th store in December and ended the year with 1,503 stores.
During the fourth quarter 2020, Murphy USA repurchased approximately 1.3 million common shares for $169.1 million at an average price of $128.17 per share. The company had total common share repurchases for the year of 3.3 million shares for $399.6 million at an average price of $119.70 per share. The repurchase plan authorized by the Board of Directors and announced in July 2019 was completed in November 2020, and a new authorization of $500 million announced October 28, 2020 is now in effect, with $375.0 million remaining available for purchase through December 2023 as of year-end 2020.
"As we exit 2020, we are excited to embark upon a new chapter in our value creation strategy as outlined in our October 2020 Capital Allocation update, which included a higher rate of planned organic growth, continuing to return capital through share repurchases, a newly announced 25-cent per share quarterly dividend, and the potential for select M&A activity, including to accelerate development of food and beverage capabilities," said President and CEO Andrew Clyde.
"In December 2020, we took an important first step in executing the M&A element of our strategy, announcing the planned acquisition of QuickChek, and its distinctive brand and customer value proposition, for $645 million. The acquisition will transform existing organic growth plans in attractive markets and accelerate and de-risk the roll-out of Food and Beverage platforms across the network. We plan to update the market with our combined performance expectations for the two firms when we provide 2021 guidance, which we expect to announce in conjunction with our fourth quarter and full-year earnings release on February 3, 2021."