|
|
Delaware
|
46-2279221
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
|
200 Peach Street
|
|
El Dorado, Arkansas
|
71730-5836
|
(Address of principal executive offices)
|
(Zip Code)
|
|
MURPHY USA INC.
|
|
TABLE OF CONTENTS
|
|
||
|
||
|
||
|
||
|
|
|
|
|
|
June 30,
|
|
December 31,
|
||||
(Thousands of dollars)
|
2017
|
|
2016
|
||||
|
(unaudited)
|
|
|
||||
Assets
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
197,095
|
|
|
$
|
153,813
|
|
Accounts receivable—trade, less allowance for doubtful accounts of $1,921 in 2017 and $1,891 in 2016
|
164,372
|
|
|
183,519
|
|
||
Inventories, at lower of cost or market
|
179,044
|
|
|
153,351
|
|
||
Prepaid expenses and other current assets
|
25,233
|
|
|
24,871
|
|
||
Total current assets
|
565,744
|
|
|
515,554
|
|
||
Property, plant and equipment, at cost less accumulated depreciation and amortization of $818,409 in 2017 and $780,426 in 2016
|
1,613,234
|
|
|
1,532,655
|
|
||
Other assets
|
44,208
|
|
|
40,531
|
|
||
Total assets
|
$
|
2,223,186
|
|
|
$
|
2,088,740
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
||
Current liabilities
|
|
|
|
|
|
||
Current maturities of long-term debt
|
$
|
14,958
|
|
|
$
|
40,596
|
|
Trade accounts payable and accrued liabilities
|
394,303
|
|
|
473,370
|
|
||
Income taxes payable
|
—
|
|
|
594
|
|
||
Total current liabilities
|
409,261
|
|
|
514,560
|
|
||
|
|
|
|
||||
Long-term debt, including capitalized lease obligations
|
869,086
|
|
|
629,622
|
|
||
Deferred income taxes
|
217,670
|
|
|
204,656
|
|
||
Asset retirement obligations
|
26,978
|
|
|
26,200
|
|
||
Deferred credits and other liabilities
|
19,550
|
|
|
16,626
|
|
||
Total liabilities
|
1,542,545
|
|
|
1,391,664
|
|
||
Stockholders' Equity
|
|
|
|
|
|
||
Preferred Stock, par $0.01 (authorized 20,000,000 shares,
|
|
|
|
||||
none outstanding)
|
—
|
|
|
—
|
|
||
Common Stock, par $0.01 (authorized 200,000,000 shares,
|
|
|
|
||||
46,767,164 and 46,767,164 shares issued at
|
|
|
|
||||
2017 and 2016, respectively)
|
468
|
|
|
468
|
|
||
Treasury stock (10,715,229 and 9,831,196 shares held at
|
|
|
|
||||
June 30, 2017 and December 31, 2016, respectively)
|
(667,522
|
)
|
|
(608,001
|
)
|
||
Additional paid in capital (APIC)
|
545,887
|
|
|
555,338
|
|
||
Retained earnings
|
801,808
|
|
|
749,271
|
|
||
Total stockholders' equity
|
680,641
|
|
|
697,076
|
|
||
Total liabilities and stockholders' equity
|
$
|
2,223,186
|
|
|
$
|
2,088,740
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(Thousands of dollars except per share amounts)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Operating Revenues
|
|
|
|
|
|
|
|
||||||||
Petroleum product sales (a)
|
$
|
2,567,719
|
|
|
$
|
2,371,735
|
|
|
$
|
4,969,973
|
|
|
$
|
4,260,019
|
|
Merchandise sales
|
605,698
|
|
|
589,457
|
|
|
1,171,488
|
|
|
1,151,194
|
|
||||
Other operating revenues
|
37,643
|
|
|
44,570
|
|
|
69,217
|
|
|
84,811
|
|
||||
Total operating revenues
|
3,211,060
|
|
|
3,005,762
|
|
|
6,210,678
|
|
|
5,496,024
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||
Petroleum product cost of goods sold (a)
|
2,413,175
|
|
|
2,242,936
|
|
|
4,742,508
|
|
|
4,026,065
|
|
||||
Merchandise cost of goods sold
|
507,979
|
|
|
496,801
|
|
|
984,940
|
|
|
972,603
|
|
||||
Station and other operating expenses
|
129,433
|
|
|
125,145
|
|
|
254,177
|
|
|
241,919
|
|
||||
Depreciation and amortization
|
27,513
|
|
|
23,685
|
|
|
54,525
|
|
|
47,171
|
|
||||
Selling, general and administrative
|
31,347
|
|
|
32,320
|
|
|
69,593
|
|
|
63,823
|
|
||||
Accretion of asset retirement obligations
|
446
|
|
|
412
|
|
|
888
|
|
|
825
|
|
||||
Total operating expenses
|
3,109,893
|
|
|
2,921,299
|
|
|
6,106,631
|
|
|
5,352,406
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Gain (loss) on sale of assets
|
130
|
|
|
(490
|
)
|
|
(3,368
|
)
|
|
88,975
|
|
||||
Income from operations
|
101,297
|
|
|
83,973
|
|
|
100,679
|
|
|
232,593
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income
|
318
|
|
|
250
|
|
|
365
|
|
|
330
|
|
||||
Interest expense
|
(11,644
|
)
|
|
(10,210
|
)
|
|
(21,142
|
)
|
|
(19,598
|
)
|
||||
Other nonoperating income
|
3
|
|
|
85
|
|
|
235
|
|
|
118
|
|
||||
Total other income (expense)
|
(11,323
|
)
|
|
(9,875
|
)
|
|
(20,542
|
)
|
|
(19,150
|
)
|
||||
Income before income taxes
|
89,974
|
|
|
74,098
|
|
|
80,137
|
|
|
213,443
|
|
||||
Income tax expense
|
34,411
|
|
|
27,788
|
|
|
27,600
|
|
|
81,259
|
|
||||
Net Income
|
$
|
55,563
|
|
|
$
|
46,310
|
|
|
$
|
52,537
|
|
|
$
|
132,184
|
|
|
|
|
|
|
|
|
|
||||||||
Basic and Diluted Earnings Per Common Share
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.52
|
|
|
$
|
1.18
|
|
|
$
|
1.43
|
|
|
$
|
3.29
|
|
Diluted
|
1.51
|
|
|
1.17
|
|
|
$
|
1.42
|
|
|
$
|
3.26
|
|
||
Weighted-Average Common Shares Outstanding (in thousands):
|
|
|
|
|
|
|
|
||||||||
Basic
|
36,525
|
|
|
39,360
|
|
|
36,700
|
|
|
40,134
|
|
||||
Diluted
|
36,861
|
|
|
39,720
|
|
|
37,018
|
|
|
40,505
|
|
||||
Supplemental information:
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
(a) Includes excise taxes of:
|
$
|
504,582
|
|
|
$
|
487,923
|
|
|
$
|
984,650
|
|
|
$
|
960,533
|
|
(Thousands of dollars)
|
Six Months Ended
June 30, |
||||||
|
2017
|
|
2016
|
||||
Operating Activities
|
|
|
|
||||
Net income
|
$
|
52,537
|
|
|
$
|
132,184
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|||
Depreciation and amortization
|
54,525
|
|
|
47,171
|
|
||
Deferred and noncurrent income tax charges
|
13,014
|
|
|
14,605
|
|
||
Accretion of asset retirement obligations
|
888
|
|
|
825
|
|
||
Pretax (gains) losses from sale of assets
|
3,368
|
|
|
(88,975
|
)
|
||
Net (increase) decrease in noncash operating working capital
|
(84,718
|
)
|
|
57,427
|
|
||
Other operating activities - net
|
828
|
|
|
5,365
|
|
||
Net cash provided by operating activities
|
40,442
|
|
|
168,602
|
|
||
Investing Activities
|
|
|
|
|
|
||
Property additions
|
(134,150
|
)
|
|
(116,569
|
)
|
||
Proceeds from sale of assets
|
715
|
|
|
86,298
|
|
||
Changes in restricted cash
|
—
|
|
|
13,429
|
|
||
Other investing activities - net
|
(4,143
|
)
|
|
(15,138
|
)
|
||
Net cash required by investing activities
|
(137,578
|
)
|
|
(31,980
|
)
|
||
Financing Activities
|
|
|
|
|
|
||
Purchase of treasury stock
|
(66,337
|
)
|
|
(167,105
|
)
|
||
Borrowings of debt
|
338,750
|
|
|
200,000
|
|
||
Repayments of debt
|
(125,901
|
)
|
|
(10,165
|
)
|
||
Debt issuance costs
|
(935
|
)
|
|
(3,240
|
)
|
||
Amounts related to share-based compensation
|
(5,159
|
)
|
|
(4,237
|
)
|
||
Net cash provided by financing activities
|
140,418
|
|
|
15,253
|
|
||
Net increase in cash and cash equivalents
|
43,282
|
|
|
151,875
|
|
||
Cash and cash equivalents at January 1
|
153,813
|
|
|
102,335
|
|
||
Cash and cash equivalents at June 30
|
$
|
197,095
|
|
|
$
|
254,210
|
|
|
Common Stock
|
|
|
|
|
|
|
|
|
|||||||||||||
(Thousands of dollars, except share amounts)
|
Shares
|
|
Par
|
|
Treasury Stock
|
|
APIC
|
|
Retained Earnings
|
|
Total
|
|||||||||||
Balance as of December 31, 2015
|
46,767,164
|
|
|
$
|
468
|
|
|
$
|
(294,139
|
)
|
|
$
|
558,182
|
|
|
$
|
527,779
|
|
|
$
|
792,290
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
132,184
|
|
|
132,184
|
|
|||||
Purchase of treasury stock
|
—
|
|
|
—
|
|
|
(167,105
|
)
|
|
—
|
|
|
—
|
|
|
(167,105
|
)
|
|||||
Issuance of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Issuance of treasury stock
|
—
|
|
|
—
|
|
|
6,748
|
|
|
(6,748
|
)
|
|
—
|
|
|
—
|
|
|||||
Amounts related to share-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,237
|
)
|
|
—
|
|
|
(4,237
|
)
|
|||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
4,780
|
|
|
—
|
|
|
4,780
|
|
|||||
Balance as of June 30, 2016
|
46,767,164
|
|
|
$
|
468
|
|
|
$
|
(454,496
|
)
|
|
$
|
551,977
|
|
|
$
|
659,963
|
|
|
$
|
757,912
|
|
|
Common Stock
|
|
|
|
|
|
|
|
|
|||||||||||||
(Thousands of dollars, except share amounts)
|
Shares
|
|
Par
|
|
Treasury Stock
|
|
APIC
|
|
Retained Earnings
|
|
Total
|
|||||||||||
Balance as of December 31, 2016
|
46,767,164
|
|
|
$
|
468
|
|
|
$
|
(608,001
|
)
|
|
$
|
555,338
|
|
|
$
|
749,271
|
|
|
$
|
697,076
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52,537
|
|
|
52,537
|
|
|||||
Purchase of treasury stock
|
—
|
|
|
—
|
|
|
(66,337
|
)
|
|
—
|
|
|
—
|
|
|
(66,337
|
)
|
|||||
Issuance of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Issuance of treasury stock
|
—
|
|
|
—
|
|
|
6,816
|
|
|
(6,816
|
)
|
|
—
|
|
|
—
|
|
|||||
Amounts related to share-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,159
|
)
|
|
—
|
|
|
(5,159
|
)
|
|||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
2,524
|
|
|
—
|
|
|
2,524
|
|
|||||
Balance as of June 30, 2017
|
46,767,164
|
|
|
$
|
468
|
|
|
$
|
(667,522
|
)
|
|
$
|
545,887
|
|
|
$
|
801,808
|
|
|
$
|
680,641
|
|
(Thousands of dollars)
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
Finished products - FIFO basis
|
|
$
|
202,737
|
|
|
$
|
207,903
|
|
Less LIFO reserve - finished products
|
|
(128,515
|
)
|
|
(153,319
|
)
|
||
Finished products - LIFO basis
|
|
74,222
|
|
|
54,584
|
|
||
Store merchandise for resale
|
|
100,214
|
|
|
95,649
|
|
||
Materials and supplies
|
|
4,608
|
|
|
3,118
|
|
||
Total inventories
|
|
$
|
179,044
|
|
|
$
|
153,351
|
|
(Thousands of dollars)
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
6% senior notes due 2023 (net of unamortized discount of $5,392 at June 30, 2017 and $5,826 at December 2
016)
|
|
$
|
494,608
|
|
|
$
|
494,174
|
|
5.625% senior notes due 2027 (net of unamortized discount of $3,682 at June 30, 2017)
|
|
296,318
|
|
|
—
|
|
||
Term loan due 2020 (effective rate of 3.78% at June 30, 2017)
|
|
97,000
|
|
|
180,000
|
|
||
Capitalized lease obligations, vehicles, due through 2021
|
|
1,909
|
|
|
1,451
|
|
||
Less unamortized debt issuance costs
|
|
(5,791
|
)
|
|
(5,407
|
)
|
||
Total long-term debt
|
|
884,044
|
|
|
670,218
|
|
||
Less current maturities
|
|
14,958
|
|
|
40,596
|
|
||
Total long-term debt, net of current
|
|
$
|
869,086
|
|
|
$
|
629,622
|
|
•
|
the London interbank offered rate, adjusted for statutory reserve requirements (the “Adjusted LIBO Rate”); or
|
•
|
the Alternate Base Rate, which is defined as the highest of (a) the prime rate, (b) the federal funds effective rate from time to time plus
0.50%
per annum and (c) the one-month Adjusted LIBO Rate plus
1.00%
per annum,
|
(Thousands of dollars)
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
Balance at beginning of period
|
|
$
|
26,200
|
|
|
$
|
24,345
|
|
Accretion expense
|
|
888
|
|
|
1,650
|
|
||
Liabilities incurred
|
|
167
|
|
|
379
|
|
||
Settlement of liabilities
|
|
$
|
(277
|
)
|
|
$
|
(174
|
)
|
Balance at end of period
|
|
$
|
26,978
|
|
|
$
|
26,200
|
|
|
|
2017
|
|
2016
|
Three months ended June 30,
|
|
38.2%
|
|
37.5%
|
Six months ended June 30,
|
|
34.4%
|
|
38.1%
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Net income per share - basic
|
|
|
|
|
|
|
|
||||||||
Net income attributable to common stockholders
|
$
|
55,563
|
|
|
$
|
46,310
|
|
|
$
|
52,537
|
|
|
$
|
132,184
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding (in thousands)
|
36,525
|
|
|
39,360
|
|
|
36,700
|
|
|
40,134
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings per common share
|
$
|
1.52
|
|
|
$
|
1.18
|
|
|
$
|
1.43
|
|
|
$
|
3.29
|
|
|
|
|
|
|
|
|
|
Earnings per common share - assuming dilution:
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share - diluted
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to common stockholders
|
$
|
55,563
|
|
|
$
|
46,310
|
|
|
$
|
52,537
|
|
|
$
|
132,184
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding (in thousands)
|
36,525
|
|
|
39,360
|
|
|
36,700
|
|
|
40,134
|
|
||||
Common equivalent shares:
|
|
|
|
|
|
|
|
||||||||
Dilutive options
|
336
|
|
|
360
|
|
|
318
|
|
|
371
|
|
||||
Weighted average common shares outstanding - assuming dilution (in thousands)
|
36,861
|
|
|
39,720
|
|
|
37,018
|
|
|
40,505
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings per common share assuming dilution
|
$
|
1.51
|
|
|
$
|
1.17
|
|
|
$
|
1.42
|
|
|
$
|
3.26
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(Thousands of dollars)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Renewable Identification Numbers (RINs) sales
|
$
|
36,618
|
|
|
$
|
43,868
|
|
|
$
|
65,646
|
|
|
$
|
82,643
|
|
Other
|
1,025
|
|
|
702
|
|
|
3,571
|
|
|
2,168
|
|
||||
Other operating revenues
|
$
|
37,643
|
|
|
$
|
44,570
|
|
|
$
|
69,217
|
|
|
$
|
84,811
|
|
|
Six Months Ended June 30,
|
||||||
(Thousands of dollars)
|
2017
|
|
2016
|
||||
Accounts receivable
|
$
|
19,192
|
|
|
$
|
(11,921
|
)
|
Inventories
|
(25,712
|
)
|
|
3,412
|
|
||
Prepaid expenses and other current assets
|
(362
|
)
|
|
23,978
|
|
||
Accounts payable and accrued liabilities
|
(77,242
|
)
|
|
17,955
|
|
||
Income taxes payable
|
(594
|
)
|
|
24,003
|
|
||
Net decrease (increase) in noncash operating working capital
|
$
|
(84,718
|
)
|
|
$
|
57,427
|
|
|
|
At June 30, 2017
|
|
At December 31, 2016
|
||||||||||||
|
|
Carrying
|
|
|
|
Carrying
|
|
|
||||||||
(Thousands of dollars)
|
|
Amount
|
|
Fair Value
|
|
Amount
|
|
Fair Value
|
||||||||
Financial liabilities
|
|
|
|
|
|
|
|
|
||||||||
Current and long-term debt
|
|
$
|
(884,044
|
)
|
|
$
|
(916,128
|
)
|
|
$
|
(670,218
|
)
|
|
$
|
(690,114
|
)
|
|
|
|
|
Three Months Ended
|
|||||||||||||||
|
|
|
|
June 30, 2017
|
|
June 30, 2016
|
|||||||||||||
|
|
Total Assets at
|
|
External
|
|
Income
|
|
External
|
|
Income
|
|||||||||
(Thousands of dollars)
|
|
June 30,
|
|
Revenues
|
|
(Loss)
|
|
Revenues
|
|
(Loss)
|
|||||||||
Marketing
|
|
1,914,740
|
|
|
$
|
3,211,038
|
|
|
$
|
63,714
|
|
|
$
|
3,005,750
|
|
|
$
|
53,442
|
|
Corporate and other assets
|
|
308,446
|
|
|
22
|
|
|
(8,151
|
)
|
|
12
|
|
|
(7,132
|
)
|
||||
Total
|
|
2,223,186
|
|
|
$
|
3,211,060
|
|
|
$
|
55,563
|
|
|
$
|
3,005,762
|
|
|
$
|
46,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
Six Months Ended
|
|||||||||||||||
|
|
|
|
June 30, 2017
|
|
June 30, 2016
|
|||||||||||||
|
|
|
|
External
|
|
Income
|
|
External
|
|
Income
|
|||||||||
(Thousands of dollars)
|
|
|
|
Revenues
|
|
(Loss)
|
|
Revenues
|
|
(Loss)
|
|||||||||
Marketing
|
|
|
|
6,210,444
|
|
|
64,314
|
|
|
$
|
5,495,808
|
|
|
$
|
145,867
|
|
|||
Corporate and other assets
|
|
|
|
234
|
|
|
(11,777
|
)
|
|
216
|
|
|
(13,683
|
)
|
|||||
Total
|
|
|
|
$
|
6,210,678
|
|
|
$
|
52,537
|
|
|
$
|
5,496,024
|
|
|
$
|
132,184
|
|
(Thousands of dollars)
|
June 30, 2017
|
||||||||||||||||
Assets
|
Parent Company
|
|
Issuer
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
—
|
|
|
197,090
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
197,095
|
|
Accounts receivable—trade, less allowance for doubtful accounts of $1,921 in 2017
|
—
|
|
|
164,372
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
164,372
|
|
Inventories, at lower of cost or market
|
—
|
|
|
179,044
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
179,044
|
|
Prepaid expenses and other current assets
|
—
|
|
|
25,230
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
25,233
|
|
Total current assets
|
—
|
|
|
565,736
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
565,744
|
|
Property, plant and equipment, at cost less accumulated depreciation and amortization of $818,409 in 2017
|
—
|
|
|
1,612,436
|
|
|
798
|
|
|
—
|
|
|
—
|
|
|
1,613,234
|
|
Investments in subsidiaries
|
2,030,647
|
|
|
144,911
|
|
|
—
|
|
|
—
|
|
|
(2,175,558
|
)
|
|
—
|
|
Other assets
|
—
|
|
|
44,208
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44,208
|
|
Total assets
|
2,030,647
|
|
|
2,367,291
|
|
|
806
|
|
|
—
|
|
|
(2,175,558
|
)
|
|
2,223,186
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current maturities of long-term debt
|
—
|
|
|
14,958
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,958
|
|
Inter-company accounts payable
|
689,653
|
|
|
(484,066
|
)
|
|
(51,249
|
)
|
|
(154,338
|
)
|
|
—
|
|
|
—
|
|
Trade accounts payable and accrued liabilities
|
—
|
|
|
394,303
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
394,303
|
|
Total current liabilities
|
689,653
|
|
|
(74,805
|
)
|
|
(51,249
|
)
|
|
(154,338
|
)
|
|
—
|
|
|
409,261
|
|
Long-term debt, including capitalized lease obligations
|
—
|
|
|
869,086
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
869,086
|
|
Deferred income taxes
|
—
|
|
|
217,670
|
|
|
—
|
|
|
—
|
|
|
|
|
|
217,670
|
|
Asset retirement obligations
|
—
|
|
|
26,978
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26,978
|
|
Deferred credits and other liabilities
|
—
|
|
|
19,550
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19,550
|
|
Total liabilities
|
689,653
|
|
|
1,058,479
|
|
|
(51,249
|
)
|
|
(154,338
|
)
|
|
—
|
|
|
1,542,545
|
|
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock, par $0.01 (authorized 20,000,000 shares, none outstanding)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Common Stock, par $0.01 (authorized 200,000,000 shares, 46,767,164 shares issued at June 30, 2017)
|
468
|
|
|
1
|
|
|
60
|
|
|
—
|
|
|
(61
|
)
|
|
468
|
|
Treasury Stock (10,715,229 shares held at June 30, 2017
)
|
(667,522
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(667,522
|
)
|
Additional paid in capital (APIC)
|
1,206,240
|
|
|
568,482
|
|
|
52,004
|
|
|
87,543
|
|
|
(1,368,382
|
)
|
|
545,887
|
|
Retained earnings
|
801,808
|
|
|
740,329
|
|
|
(9
|
)
|
|
66,795
|
|
|
(807,115
|
)
|
|
801,808
|
|
Total stockholders' equity
|
1,340,994
|
|
|
1,308,812
|
|
|
52,055
|
|
|
154,338
|
|
|
(2,175,558
|
)
|
|
680,641
|
|
Total liabilities and stockholders' equity
|
2,030,647
|
|
|
2,367,291
|
|
|
806
|
|
|
—
|
|
|
(2,175,558
|
)
|
|
2,223,186
|
|
(Thousands of dollars)
|
December 31, 2016
|
||||||||||||||||||||||
Assets
|
Parent Company
|
|
Issuer
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
153,813
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
153,813
|
|
Accounts receivable—trade, less allowance for doubtful accounts of $1,891 in 2016
|
—
|
|
|
183,519
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
183,519
|
|
||||||
Inventories, at lower of cost or market
|
—
|
|
|
153,351
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
153,351
|
|
||||||
Prepaid expenses and other current assets
|
—
|
|
|
24,871
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24,871
|
|
||||||
Total current assets
|
—
|
|
|
515,554
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
515,554
|
|
||||||
Property, plant and equipment, at cost less accumulated depreciation and amortization of $780,426 in 2016
|
—
|
|
|
1,532,655
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,532,655
|
|
||||||
Investments in subsidiaries
|
1,978,110
|
|
|
144,917
|
|
|
—
|
|
|
—
|
|
|
(2,123,027
|
)
|
|
—
|
|
||||||
Other assets
|
—
|
|
|
40,531
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40,531
|
|
||||||
Total assets
|
$
|
1,978,110
|
|
|
$
|
2,233,657
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2,123,027
|
)
|
|
$
|
2,088,740
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current maturities of long-term debt
|
$
|
—
|
|
|
$
|
40,596
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
40,596
|
|
Inter-company accounts payable
|
623,316
|
|
|
(416,914
|
)
|
|
(52,064
|
)
|
|
(154,338
|
)
|
|
—
|
|
|
—
|
|
||||||
Trade accounts payable and accrued liabilities
|
—
|
|
|
473,370
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
473,370
|
|
||||||
Income taxes payable
|
—
|
|
|
591
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
594
|
|
||||||
Total current liabilities
|
623,316
|
|
|
97,643
|
|
|
(52,061
|
)
|
|
(154,338
|
)
|
|
—
|
|
|
514,560
|
|
||||||
Long-term debt, including capitalized lease obligations
|
—
|
|
|
629,622
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
629,622
|
|
||||||
Deferred income taxes
|
—
|
|
|
204,656
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
204,656
|
|
||||||
Asset retirement obligations
|
—
|
|
|
26,200
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26,200
|
|
||||||
Deferred credits and other liabilities
|
—
|
|
|
16,626
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,626
|
|
||||||
Total liabilities
|
623,316
|
|
|
974,747
|
|
|
(52,061
|
)
|
|
(154,338
|
)
|
|
—
|
|
|
1,391,664
|
|
||||||
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Preferred Stock, par $0.01 (authorized 20,000,000 shares, none outstanding)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Common Stock, par $0.01 (authorized 200,000,000 shares, 46,767,164 shares issued at December 31, 2016)
|
468
|
|
|
1
|
|
|
60
|
|
|
—
|
|
|
(61
|
)
|
|
468
|
|
||||||
Treasury Stock (9,831,196 shares held at December 31, 2016)
|
(608,001
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(608,001
|
)
|
||||||
Additional paid in capital (APIC)
|
1,213,056
|
|
|
571,117
|
|
|
52,004
|
|
|
87,543
|
|
|
(1,368,382
|
)
|
|
555,338
|
|
||||||
Retained earnings
|
749,271
|
|
|
687,792
|
|
|
(3
|
)
|
|
66,795
|
|
|
(754,584
|
)
|
|
749,271
|
|
||||||
Total stockholders' equity
|
1,354,794
|
|
|
1,258,910
|
|
|
52,061
|
|
|
154,338
|
|
|
(2,123,027
|
)
|
|
697,076
|
|
||||||
Total liabilities and stockholders' equity
|
$
|
1,978,110
|
|
|
$
|
2,233,657
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2,123,027
|
)
|
|
$
|
2,088,740
|
|
(Thousands of dollars)
|
Three Months Ended June 30, 2017
|
||||||||||||||||
Operating Revenues
|
Parent Company
|
|
Issuer
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||
Petroleum product sales
|
—
|
|
|
2,567,719
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,567,719
|
|
Merchandise sales
|
—
|
|
|
605,698
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
605,698
|
|
Other operating revenues
|
—
|
|
|
37,641
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
37,643
|
|
Total operating revenues
|
—
|
|
|
3,211,058
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
3,211,060
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum product cost of goods sold
|
—
|
|
|
2,413,175
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,413,175
|
|
Merchandise cost of goods sold
|
—
|
|
|
507,979
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
507,979
|
|
Station and other operating expenses
|
—
|
|
|
129,432
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
129,433
|
|
Depreciation and amortization
|
—
|
|
|
27,507
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
27,513
|
|
Selling, general and administrative
|
—
|
|
|
31,347
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31,347
|
|
Accretion of asset retirement obligations
|
—
|
|
|
446
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
446
|
|
Total operating expenses
|
—
|
|
|
3,109,886
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
3,109,893
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gain (loss) on sale of assets
|
—
|
|
|
130
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
130
|
|
Income (loss) from operations
|
—
|
|
|
101,302
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
101,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
—
|
|
|
318
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
318
|
|
Interest expense
|
—
|
|
|
(11,644
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,644
|
)
|
Other nonoperating income
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
Total other income (expense)
|
—
|
|
|
(11,323
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,323
|
)
|
Income (loss) before income taxes
|
—
|
|
|
89,979
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
89,974
|
|
Income tax expense
|
—
|
|
|
34,411
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34,411
|
|
Income (loss)
|
—
|
|
|
55,568
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
55,563
|
|
Equity earnings in affiliates, net of tax
|
(55,563
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55,563
|
|
|
—
|
|
Net Income (Loss)
|
(55,563
|
)
|
|
55,568
|
|
|
(5
|
)
|
|
—
|
|
|
55,563
|
|
|
55,563
|
|
(Thousands of dollars)
|
Three Months Ended June 30, 2016
|
||||||||||||||||||||||
Operating Revenues
|
Parent Company
|
|
Issuer
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Petroleum product sales
|
$
|
—
|
|
|
$
|
2,371,735
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,371,735
|
|
Merchandise sales
|
—
|
|
|
589,457
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
589,457
|
|
||||||
Other operating revenues
|
—
|
|
|
44,570
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44,570
|
|
||||||
Total operating revenues
|
$
|
—
|
|
|
$
|
3,005,762
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,005,762
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Petroleum product cost of goods sold
|
—
|
|
|
2,242,936
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,242,936
|
|
||||||
Merchandise cost of goods sold
|
—
|
|
|
496,801
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
496,801
|
|
||||||
Station and other operating expenses
|
—
|
|
|
125,145
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
125,145
|
|
||||||
Depreciation and amortization
|
—
|
|
|
23,685
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,685
|
|
||||||
Selling, general and administrative
|
—
|
|
|
32,320
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32,320
|
|
||||||
Accretion of asset retirement obligations
|
—
|
|
|
412
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
412
|
|
||||||
Total operating expenses
|
—
|
|
|
2,921,299
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,921,299
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain (loss) on sale of assets
|
$
|
—
|
|
|
$
|
(490
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(490
|
)
|
Income from operations
|
$
|
—
|
|
|
$
|
83,973
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
83,973
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest income
|
—
|
|
|
250
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
250
|
|
||||||
Interest expense
|
—
|
|
|
(10,210
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,210
|
)
|
||||||
Other nonoperating income
|
—
|
|
|
85
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
85
|
|
||||||
Total other income (expense)
|
$
|
—
|
|
|
$
|
(9,875
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(9,875
|
)
|
Income before income taxes
|
—
|
|
|
74,098
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
74,098
|
|
||||||
Income tax expense
|
—
|
|
|
27,788
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,788
|
|
||||||
Income
|
—
|
|
|
46,310
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46,310
|
|
||||||
Equity earnings in affiliates, net of tax
|
46,310
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(46,310
|
)
|
|
—
|
|
||||||
Net Income (Loss)
|
$
|
46,310
|
|
|
$
|
46,310
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(46,310
|
)
|
|
$
|
46,310
|
|
(Thousands of dollars)
|
Six Months Ended June 30, 2017
|
||||||||||||||||
Operating Revenues
|
Parent Company
|
|
Issuer
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||
Petroleum product sales
|
—
|
|
|
4,969,973
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,969,973
|
|
Merchandise sales
|
—
|
|
|
1,171,488
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,171,488
|
|
Other operating revenues
|
—
|
|
|
69,215
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
69,217
|
|
Total operating revenues
|
—
|
|
|
6,210,676
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
6,210,678
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum product cost of goods sold
|
—
|
|
|
4,742,508
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,742,508
|
|
Merchandise cost of goods sold
|
—
|
|
|
984,940
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
984,940
|
|
Station and other operating expenses
|
—
|
|
|
254,176
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
254,177
|
|
Depreciation and amortization
|
—
|
|
|
54,519
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
54,525
|
|
Selling, general and administrative
|
—
|
|
|
69,592
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
69,593
|
|
Accretion of asset retirement obligations
|
—
|
|
|
888
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
888
|
|
Total operating expenses
|
—
|
|
|
6,106,623
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
6,106,631
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gain (loss) on sale of assets
|
—
|
|
|
(3,368
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,368
|
)
|
Income (loss) from operations
|
—
|
|
|
100,685
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
100,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
—
|
|
|
365
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
365
|
|
Interest expense
|
—
|
|
|
(21,142
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21,142
|
)
|
Other nonoperating income
|
—
|
|
|
235
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
235
|
|
Total other income (expense)
|
—
|
|
|
(20,542
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20,542
|
)
|
Income (loss) before income taxes
|
—
|
|
|
80,143
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
80,137
|
|
Income tax expense
|
—
|
|
|
27,600
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,600
|
|
Income (loss)
|
—
|
|
|
52,543
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
52,537
|
|
Equity earnings in affiliates, net of tax
|
52,537
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
(52,531
|
)
|
|
—
|
|
Net Income (Loss)
|
52,537
|
|
|
52,537
|
|
|
(6
|
)
|
|
—
|
|
|
(52,531
|
)
|
|
52,537
|
|
(Thousands of dollars)
|
Six Months Ended June 30, 2016
|
||||||||||||||||||||||
Operating Revenues
|
Parent Company
|
|
Issuer
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Petroleum product sales
|
$
|
—
|
|
|
$
|
4,260,019
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,260,019
|
|
Merchandise sales
|
—
|
|
|
1,151,194
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,151,194
|
|
||||||
Other operating revenues
|
—
|
|
|
84,811
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
84,811
|
|
||||||
Total operating revenues
|
$
|
—
|
|
|
$
|
5,496,024
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,496,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Petroleum product cost of goods sold
|
—
|
|
|
4,026,065
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,026,065
|
|
||||||
Merchandise cost of goods sold
|
—
|
|
|
972,603
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
972,603
|
|
||||||
Station and other operating expenses
|
—
|
|
|
241,919
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
241,919
|
|
||||||
Depreciation and amortization
|
—
|
|
|
47,171
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47,171
|
|
||||||
Selling, general and administrative
|
—
|
|
|
63,822
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
63,823
|
|
||||||
Accretion of asset retirement obligations
|
—
|
|
|
825
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
825
|
|
||||||
Total operating expenses
|
—
|
|
|
5,352,405
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
5,352,406
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain (loss) on sale of assets
|
$
|
—
|
|
|
$
|
88,975
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
88,975
|
|
Income from operations
|
$
|
—
|
|
|
$
|
232,594
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
232,593
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest income
|
—
|
|
|
330
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
330
|
|
||||||
Interest expense
|
—
|
|
|
(19,598
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19,598
|
)
|
||||||
Other nonoperating income
|
—
|
|
|
118
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
118
|
|
||||||
Total other income (expense)
|
$
|
—
|
|
|
$
|
(19,150
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(19,150
|
)
|
Income before income taxes
|
—
|
|
|
213,444
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
213,443
|
|
||||||
Income tax expense (benefit)
|
—
|
|
|
81,259
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
81,259
|
|
||||||
Income
|
—
|
|
|
132,185
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
132,184
|
|
||||||
Equity earnings in affiliates, net of tax
|
132,184
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(132,183
|
)
|
|
—
|
|
||||||
Net Income (Loss)
|
$
|
132,184
|
|
|
$
|
132,184
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(132,183
|
)
|
|
$
|
132,184
|
|
(Thousands of dollars)
|
Six Months Ended June 30, 2017
|
||||||||||||||||||||||
Operating Activities
|
Parent Company
|
|
Issuer
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net income (loss)
|
$
|
52,537
|
|
|
$
|
52,537
|
|
|
$
|
(6
|
)
|
|
$
|
—
|
|
|
$
|
(52,531
|
)
|
|
$
|
52,537
|
|
Adjustments to reconcile net income (loss) to net cash provided by (required by) operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Depreciation and amortization
|
—
|
|
|
54,519
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
54,525
|
|
||||||
Deferred and noncurrent income tax charges (credits)
|
—
|
|
|
13,014
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,014
|
|
||||||
Accretion of asset retirement obligations
|
—
|
|
|
888
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
888
|
|
||||||
(Gain) loss on sale of assets
|
—
|
|
|
3,368
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,368
|
|
||||||
Net increase in noncash operating working capital
|
—
|
|
|
(84,715
|
)
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(84,718
|
)
|
||||||
Equity in earnings of affiliates
|
(52,537
|
)
|
|
6
|
|
|
—
|
|
|
—
|
|
|
52,531
|
|
|
—
|
|
||||||
Other operating activities - net
|
—
|
|
|
828
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
828
|
|
||||||
Net cash provided by (required by) operating activities
|
—
|
|
|
40,445
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
40,442
|
|
||||||
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Property additions
|
—
|
|
|
(133,346
|
)
|
|
(804
|
)
|
|
—
|
|
|
—
|
|
|
(134,150
|
)
|
||||||
Proceeds from sale of assets
|
—
|
|
|
715
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
715
|
|
||||||
Changes in restricted cash
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other investing activities - net
|
—
|
|
|
(4,143
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,143
|
)
|
||||||
Net cash required by investing activities
|
—
|
|
|
(136,774
|
)
|
|
(804
|
)
|
|
—
|
|
|
—
|
|
|
(137,578
|
)
|
||||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Purchase of treasury stock
|
(66,337
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(66,337
|
)
|
||||||
Borrowings of debt
|
—
|
|
|
338,750
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
338,750
|
|
||||||
Repayments of debt
|
—
|
|
|
(125,901
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(125,901
|
)
|
||||||
Debt issuance costs
|
—
|
|
|
(935
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(935
|
)
|
||||||
Amounts related to share-based compensation
|
—
|
|
|
(5,159
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,159
|
)
|
||||||
Net distributions to parent
|
66,337
|
|
|
(67,149
|
)
|
|
812
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net cash provided by financing activities
|
—
|
|
|
139,606
|
|
|
812
|
|
|
—
|
|
|
—
|
|
|
140,418
|
|
||||||
Net increase in cash and cash equivalents
|
—
|
|
|
43,277
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
43,282
|
|
||||||
Cash and cash equivalents at January 1
|
—
|
|
|
153,813
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
153,813
|
|
||||||
Cash and cash equivalents at June 30
|
$
|
—
|
|
|
$
|
197,090
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
197,095
|
|
(Thousands of dollars)
|
Six Months Ended June 30, 2016
|
||||||||||||||||||||||
Operating Activities
|
Parent Company
|
|
Issuer
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net income (loss)
|
$
|
132,184
|
|
|
$
|
132,184
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(132,183
|
)
|
|
$
|
132,184
|
|
Adjustments to reconcile net income (loss) to net cash provided by (required by)operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Depreciation and amortization
|
—
|
|
|
47,171
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47,171
|
|
||||||
Deferred and noncurrent income tax charges (credits)
|
—
|
|
|
14,605
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,605
|
|
||||||
Accretion of asset retirement obligations
|
—
|
|
|
825
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
825
|
|
||||||
Pretax (gains) losses from sale of assets
|
—
|
|
|
(88,975
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(88,975
|
)
|
||||||
Net decrease in noncash operating working capital
|
—
|
|
|
57,427
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57,427
|
|
||||||
Equity in earnings of affiliates
|
(132,184
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
132,183
|
|
|
—
|
|
||||||
Other operating activities - net
|
—
|
|
|
5,365
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,365
|
|
||||||
Net cash provided by (required by) operating activities
|
—
|
|
|
168,603
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
168,602
|
|
||||||
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Property additions
|
—
|
|
|
(116,569
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(116,569
|
)
|
||||||
Proceeds from sale of assets
|
—
|
|
|
86,298
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
86,298
|
|
||||||
Changes in restricted cash
|
—
|
|
|
13,429
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,429
|
|
||||||
Other investing activities - net
|
—
|
|
|
(15,138
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15,138
|
)
|
||||||
Net cash required by investing activities
|
—
|
|
|
(31,980
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(31,980
|
)
|
||||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Purchase of treasury stock
|
(167,105
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(167,105
|
)
|
||||||
Borrowings of debt
|
—
|
|
|
200,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
200,000
|
|
||||||
Repayments of debt
|
—
|
|
|
(10,165
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,165
|
)
|
||||||
Debt issuance costs
|
—
|
|
|
(3,240
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,240
|
)
|
||||||
Amounts related to share-based compensation
|
—
|
|
|
(4,237
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,237
|
)
|
||||||
Net distributions to parent
|
167,105
|
|
|
(167,106
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net cash provided by financing activities
|
—
|
|
|
15,252
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
15,253
|
|
||||||
Net increase in cash and cash equivalents
|
—
|
|
|
151,875
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
151,875
|
|
||||||
Cash and cash equivalents at January 1
|
—
|
|
|
102,335
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
102,335
|
|
||||||
Cash and cash equivalents at June 30
|
$
|
—
|
|
|
$
|
254,210
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
254,210
|
|
(Thousands of dollars)
|
Six Months Ended June 30, 2017
|
||||||||||||||||||||||
Statement of Stockholders' Equity
|
Parent Company
|
|
Issuer
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance as of December 31, 2016
|
$
|
468
|
|
|
$
|
1
|
|
|
$
|
60
|
|
|
$
|
—
|
|
|
$
|
(61
|
)
|
|
$
|
468
|
|
Issuance of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Balance as of June 30, 2017
|
$
|
468
|
|
|
$
|
1
|
|
|
$
|
60
|
|
|
$
|
—
|
|
|
$
|
(61
|
)
|
|
$
|
468
|
|
Treasury Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance as of December 31, 2016
|
$
|
(608,001
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(608,001
|
)
|
Issuance of common stock
|
6,816
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,816
|
|
||||||
Repurchase of common stock
|
(66,337
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(66,337
|
)
|
||||||
Balance as of June 30, 2017
|
$
|
(667,522
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(667,522
|
)
|
APIC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance as of December 31, 2016
|
$
|
1,213,056
|
|
|
$
|
571,117
|
|
|
$
|
52,004
|
|
|
$
|
87,543
|
|
|
$
|
(1,368,382
|
)
|
|
$
|
555,338
|
|
Issuance of common stock
|
(6,816
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,816
|
)
|
||||||
Amounts related to share-based compensation
|
—
|
|
|
(5,159
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,159
|
)
|
||||||
Share-based compensation expense
|
—
|
|
|
2,524
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,524
|
|
||||||
Balance as of June 30, 2017
|
$
|
1,206,240
|
|
|
$
|
568,482
|
|
|
$
|
52,004
|
|
|
$
|
87,543
|
|
|
$
|
(1,368,382
|
)
|
|
$
|
545,887
|
|
Retained Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance as of December 31, 2016
|
$
|
749,271
|
|
|
$
|
687,792
|
|
|
$
|
(3
|
)
|
|
$
|
66,795
|
|
|
$
|
(754,584
|
)
|
|
$
|
749,271
|
|
Net income (loss)
|
52,537
|
|
|
52,537
|
|
|
(6
|
)
|
|
—
|
|
|
(52,531
|
)
|
|
52,537
|
|
||||||
Balance as of June 30, 2017
|
$
|
801,808
|
|
|
$
|
740,329
|
|
|
$
|
(9
|
)
|
|
$
|
66,795
|
|
|
$
|
(807,115
|
)
|
|
$
|
801,808
|
|
(Thousands of dollars)
|
Six Months Ended June 30, 2016
|
||||||||||||||||||||||
Statement of Stockholders' Equity
|
Parent Company
|
|
Issuer
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance as of December 31, 2015
|
$
|
468
|
|
|
$
|
1
|
|
|
$
|
60
|
|
|
$
|
—
|
|
|
$
|
(61
|
)
|
|
$
|
468
|
|
Issuance of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Balance as of June 30, 2016
|
$
|
468
|
|
|
$
|
1
|
|
|
$
|
60
|
|
|
$
|
—
|
|
|
$
|
(61
|
)
|
|
$
|
468
|
|
Treasury Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance as of December 31, 2015
|
$
|
(294,139
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(294,139
|
)
|
Issuance of common stock
|
6,748
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,748
|
|
||||||
Repurchase of common stock
|
(167,105
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(167,105
|
)
|
||||||
Balance as of June 30, 2016
|
$
|
(454,496
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(454,496
|
)
|
APIC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance as of December 31, 2015
|
$
|
1,222,465
|
|
|
$
|
564,554
|
|
|
$
|
52,004
|
|
|
$
|
87,543
|
|
|
$
|
(1,368,384
|
)
|
|
$
|
558,182
|
|
Issuance of common stock
|
(6,748
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,748
|
)
|
||||||
Amounts related to share-based compensation
|
—
|
|
|
(4,237
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,237
|
)
|
||||||
Share-based compensation expense
|
—
|
|
|
4,780
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,780
|
|
||||||
Balance as of June 30, 2016
|
$
|
1,215,717
|
|
|
$
|
565,097
|
|
|
$
|
52,004
|
|
|
$
|
87,543
|
|
|
$
|
(1,368,384
|
)
|
|
$
|
551,977
|
|
Retained Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance as of December 31, 2015
|
$
|
527,779
|
|
|
$
|
466,300
|
|
|
$
|
(2
|
)
|
|
$
|
66,795
|
|
|
$
|
(533,093
|
)
|
|
$
|
527,779
|
|
Net income (loss)
|
132,184
|
|
|
132,184
|
|
|
(1
|
)
|
|
—
|
|
|
(132,183
|
)
|
|
132,184
|
|
||||||
Balance as of June 30, 2016
|
$
|
659,963
|
|
|
$
|
598,484
|
|
|
$
|
(3
|
)
|
|
$
|
66,795
|
|
|
$
|
(665,276
|
)
|
|
$
|
659,963
|
|
•
|
Executive Overview
—This section provides an overview of our business and the results of operations and financial condition for the periods presented. It includes information on the basis of presentation with respect to the amounts presented in the Management’s Discussion and Analysis and a discussion of the trends affecting our business.
|
•
|
Results of Operations
—This section provides an analysis of our results of operations, including the results of our operating segment for the
three and six
months ended
June 30, 2017
and
2016
.
|
•
|
Capital Resources and Liquidity
—This section provides a discussion of our financial condition and cash flows as of and for the
three and six
months ended
June 30, 2017
and
2016
. It also includes a discussion of our capital structure and available sources of liquidity.
|
•
|
Critical Accounting Policies
—This section describes the accounting policies and estimates that we consider most important for our business and that require significant judgment.
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(Thousands of dollars)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Marketing
|
|
$
|
63,714
|
|
|
$
|
53,442
|
|
|
$
|
64,314
|
|
|
$
|
145,867
|
|
Corporate and other assets
|
|
(8,151
|
)
|
|
(7,132
|
)
|
|
(11,777
|
)
|
|
(13,683
|
)
|
||||
Net income (loss)
|
|
$
|
55,563
|
|
|
$
|
46,310
|
|
|
$
|
52,537
|
|
|
$
|
132,184
|
|
•
|
Higher retail fuel margin per gallon
|
•
|
Higher merchandise margin
|
•
|
Higher station and other operating expense
|
•
|
Higher interest expense due to the issuance of the 2027 Senior Notes in the current period
|
•
|
Lower PS&W contribution including RINs
|
•
|
No repeat of the gain from the disposition of CAM pipeline
|
•
|
Slightly higher total station and other operating expenses
|
•
|
Increased G&A expense related to higher labor and benefits
|
•
|
Higher merchandise gross margin dollars from higher sales and improved rebates
|
•
|
Improved retail fuel margins in the current year due to higher margins and total volumes
|
(Thousands of dollars, except volume per store month and margins)
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
Marketing Segment
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Operating Revenues
|
|
|
|
|
|
|
|
||||||||
Petroleum product sales
|
$
|
2,567,719
|
|
|
$
|
2,371,735
|
|
|
$
|
4,969,973
|
|
|
$
|
4,260,019
|
|
Merchandise sales
|
605,698
|
|
|
589,457
|
|
|
1,171,488
|
|
|
1,151,194
|
|
||||
Other operating revenues
|
37,621
|
|
|
44,558
|
|
|
68,983
|
|
|
84,595
|
|
||||
Total operating revenues
|
3,211,038
|
|
|
3,005,750
|
|
|
6,210,444
|
|
|
5,495,808
|
|
||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||
Petroleum products cost of goods sold
|
2,413,176
|
|
|
2,242,936
|
|
|
4,742,508
|
|
|
4,026,065
|
|
||||
Merchandise cost of goods sold
|
507,979
|
|
|
496,801
|
|
|
984,940
|
|
|
972,603
|
|
||||
Station and other operating expenses
|
129,433
|
|
|
125,145
|
|
|
254,177
|
|
|
241,919
|
|
||||
Depreciation and amortization
|
25,888
|
|
|
22,118
|
|
|
51,308
|
|
|
44,033
|
|
||||
Selling, general and administrative
|
31,346
|
|
|
32,319
|
|
|
69,593
|
|
|
63,822
|
|
||||
Accretion of asset retirement obligations
|
446
|
|
|
412
|
|
|
888
|
|
|
825
|
|
||||
Total operating expenses
|
3,108,268
|
|
|
2,919,731
|
|
|
6,103,414
|
|
|
5,349,267
|
|
||||
Gain (loss) on sale of assets
|
129
|
|
|
(489
|
)
|
|
(3,368
|
)
|
|
88,976
|
|
||||
Income from operations
|
102,899
|
|
|
85,530
|
|
|
103,662
|
|
|
235,517
|
|
||||
Other income
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense
|
(20
|
)
|
|
(12
|
)
|
|
(39
|
)
|
|
(21
|
)
|
||||
Other nonoperating income (expense)
|
4
|
|
|
13
|
|
|
230
|
|
|
41
|
|
||||
Total other income (expense)
|
(16
|
)
|
|
1
|
|
|
191
|
|
|
20
|
|
||||
Income before income taxes
|
102,883
|
|
|
85,531
|
|
|
103,853
|
|
|
235,537
|
|
||||
Income tax expense
|
39,169
|
|
|
32,089
|
|
|
39,539
|
|
|
89,670
|
|
||||
Net Income
|
$
|
63,714
|
|
|
$
|
53,442
|
|
|
$
|
64,314
|
|
|
$
|
145,867
|
|
|
|
|
|
|
|
|
|
||||||||
Gallons sold per store month
|
253,333
|
|
|
258,587
|
|
|
248,219
|
|
|
255,327
|
|
||||
Fuel margin (cpg)
|
16.6
|
|
|
10.8
|
|
|
13.4
|
|
|
11.0
|
|
||||
Fuel margin $ per store month
|
$
|
42,091
|
|
|
$
|
28,019
|
|
|
$
|
33,306
|
|
|
$
|
28,029
|
|
Total tobacco sales revenue per store month
|
$
|
105,840
|
|
|
$
|
110,309
|
|
|
$
|
102,958
|
|
|
$
|
108,173
|
|
Total non-tobacco sales revenue per store month
|
$
|
38,981
|
|
|
$
|
37,203
|
|
|
$
|
37,317
|
|
|
$
|
35,874
|
|
Total merchandise sales revenue per store month
|
$
|
144,821
|
|
|
$
|
147,512
|
|
|
$
|
140,275
|
|
|
$
|
144,047
|
|
|
|
|
|
|
|
|
|
||||||||
Merchandise margin $ per store month
|
$
|
23,366
|
|
|
$
|
23,187
|
|
|
$
|
22,338
|
|
|
$
|
22,347
|
|
Merchandise margin as a percentage of merchandise sales
|
16.1
|
%
|
|
15.7
|
%
|
|
15.9
|
%
|
|
15.5
|
%
|
||||
Store count at end of period
|
1,411
|
|
|
1,344
|
|
|
1,411
|
|
|
1,344
|
|
||||
Total store months during the period
|
4,182
|
|
|
3,996
|
|
|
8,351
|
|
|
7,992
|
|
|
Variance from prior year
|
||||||||||
|
Three months ended
|
|
Six months ended
|
||||||||
|
June 30, 2017
|
|
June 30, 2017
|
||||||||
|
SSS
|
|
APSM
|
|
SSS
|
|
APSM
|
||||
Fuel gallons per month
|
(1.6
|
)%
|
|
(2.0
|
)%
|
|
(2.3
|
)%
|
|
(2.8
|
)%
|
|
|
|
|
|
|
|
|
||||
Merchandise sales
|
(0.4
|
)%
|
|
(1.8
|
)%
|
|
(1.0
|
)%
|
|
(2.6
|
)%
|
Tobacco sales
|
(1.6
|
)%
|
|
(4.1
|
)%
|
|
(2.2
|
)%
|
|
(4.8
|
)%
|
Non-tobacco sales
|
3.0
|
%
|
|
4.8
|
%
|
|
2.6
|
%
|
|
4.0
|
%
|
|
|
|
|
|
|
|
|
||||
Merchandise margin
|
1.9
|
%
|
|
0.8
|
%
|
|
1.1
|
%
|
|
—
|
%
|
Tobacco margin
|
2.6
|
%
|
|
(0.3
|
)%
|
|
2.0
|
%
|
|
(0.8
|
)%
|
Non-tobacco margin
|
0.9
|
%
|
|
2.3
|
%
|
|
(0.2
|
)%
|
|
1.0
|
%
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(Thousands of dollars)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
$
|
55,563
|
|
|
$
|
46,310
|
|
|
$
|
52,537
|
|
|
$
|
132,184
|
|
|
|
|
|
|
|
|
|
||||||||
Income tax expense (benefit)
|
34,411
|
|
|
27,788
|
|
|
27,600
|
|
|
81,259
|
|
||||
Interest expense, net of interest income
|
11,326
|
|
|
9,960
|
|
|
20,777
|
|
|
19,268
|
|
||||
Depreciation and amortization
|
27,513
|
|
|
23,685
|
|
|
54,525
|
|
|
47,171
|
|
||||
EBITDA
|
128,813
|
|
|
107,743
|
|
|
155,439
|
|
|
279,882
|
|
Accretion of asset retirement obligations
|
446
|
|
|
412
|
|
|
888
|
|
|
825
|
|
||||
(Gain) loss on sale of assets
|
(130
|
)
|
|
490
|
|
|
3,368
|
|
|
(88,975
|
)
|
||||
Other nonoperating (income) expense
|
(3
|
)
|
|
(85
|
)
|
|
(235
|
)
|
|
(118
|
)
|
||||
Adjusted EBITDA
|
$
|
129,126
|
|
|
$
|
108,560
|
|
|
$
|
159,460
|
|
|
$
|
191,614
|
|
(Thousands of dollars)
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
6% senior notes due 2023 (net of unamortized discount of $5,392 at June 30, 2017 and $5,826 at December 2
016)
|
|
$
|
494,608
|
|
|
$
|
494,174
|
|
5.625% senior notes due 2027 (net of unamortized discount of $3,682 at June 30, 2017)
|
|
296,318
|
|
|
—
|
|
||
Term loan due 2020 (effective rate of 3.78% at June 30, 2017)
|
|
97,000
|
|
|
180,000
|
|
||
Capitalized lease obligations, vehicles, due through 2021
|
|
1,909
|
|
|
1,451
|
|
||
Less unamortized debt issuance costs
|
|
(5,791
|
)
|
|
(5,407
|
)
|
||
Total notes payable, net
|
|
884,044
|
|
|
670,218
|
|
||
Less current maturities
|
|
14,958
|
|
|
40,596
|
|
||
Total long-term debt
|
|
$
|
869,086
|
|
|
$
|
629,622
|
|
•
|
the London interbank offered rate, adjusted for statutory reserve requirements (the “Adjusted LIBO Rate”); or
|
•
|
the Alternate Base Rate, which is defined as the highest of (a) the prime rate, (b) the federal funds effective rate from time to time plus
0.50%
per annum and (c) the one-month Adjusted LIBO Rate plus
1.00%
per annum,
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(Thousands of dollars)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Marketing:
|
|
|
|
|
|
|
|
||||||||
Company stores
|
$
|
50,816
|
|
|
$
|
53,663
|
|
|
$
|
98,683
|
|
|
$
|
86,996
|
|
Terminals
|
383
|
|
|
374
|
|
|
668
|
|
|
409
|
|
||||
Sustaining capital
|
12,458
|
|
|
10,008
|
|
|
19,925
|
|
|
14,926
|
|
||||
Corporate and other assets
|
11,335
|
|
|
5,502
|
|
|
18,793
|
|
|
8,872
|
|
||||
Total
|
$
|
74,992
|
|
|
$
|
69,547
|
|
|
$
|
138,069
|
|
|
$
|
111,203
|
|
|
|
Issuer Purchases of Equity Securities
|
||||||||||||
|
|
|
|
|
|
Total Number
|
|
Approximate
|
||||||
|
|
|
|
|
|
of Shares
|
|
Dollar Value of
|
||||||
|
|
|
|
|
|
Purchased as
|
|
Shares That May
|
||||||
|
|
Total Number
|
|
Average
|
|
Part of Publicly
|
|
Yet Be Purchased
|
||||||
|
|
of Shares
|
|
Price Paid
|
|
Announced Plans
|
|
Under the Plans
|
||||||
Period Duration
|
|
Purchased
|
|
Per Share
|
|
or Programs
|
|
or Programs
1
|
||||||
April 1, 2017 to April 30, 2017
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
159,316,872
|
|
May 1, 2017 to May 31, 2017
|
|
598,141
|
|
|
66.95
|
|
|
598,141
|
|
|
119,273,272
|
|
||
June 1, 2017 to June 30, 2017
|
|
127,600
|
|
|
69.61
|
|
|
127,600
|
|
|
110,390,996
|
|
||
Three Months Ended June 30, 2017
|
|
725,741
|
|
|
$
|
67.42
|
|
|
725,741
|
|
|
$
|
110,390,996
|
|
|
|
|
|
EMPLOYEE
|
Murphy Oil USA, Inc.
|
|
|
By:
/s/ Marn K. Cheng
|
By:
/s/ Stacy Young
|
|
|
Marn Cheng
|
Stacy Young
|
|
Vice President of Human Resources
|
|
|
Date:
4/30/17
|
Date:
4/30/17
|
|
|
Six Months
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Ended
|
|
Years Ended December 31,
|
||||||||||||||||||||
|
|
June 30, 2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Income from continuing operations before income taxes
|
|
$
|
80,137
|
|
|
$
|
352,031
|
|
|
$
|
218,289
|
|
|
$
|
339,347
|
|
|
$
|
254,194
|
|
|
$
|
229,940
|
|
Distributions greater than equity in earnings of affiliates
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Previously capitalized interest charged to earnings during the period
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Interest and expense on indebtedness, excluding capitalized interest
|
|
22,847
|
|
|
40,041
|
|
|
33,531
|
|
|
36,646
|
|
|
14,608
|
|
|
505
|
|
||||||
Interest portion of rentals *
|
|
2,405
|
|
|
7,728
|
|
|
7,473
|
|
|
2,842
|
|
|
2,380
|
|
|
2,610
|
|
||||||
Earnings before provision for taxes and fixed charges
|
|
105,389
|
|
|
399,800
|
|
|
259,293
|
|
|
378,835
|
|
|
271,182
|
|
|
233,055
|
|
||||||
Interest and expense on indebtedness, excluding capitalized interest
|
|
$
|
22,847
|
|
|
$
|
40,041
|
|
|
$
|
33,531
|
|
|
$
|
36,646
|
|
|
$
|
14,608
|
|
|
$
|
505
|
|
Capitalized interest
|
|
(1,705
|
)
|
|
(337
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Interest portion of rentals*
|
|
2,405
|
|
|
7,728
|
|
|
7,473
|
|
|
2,842
|
|
|
2,380
|
|
|
2,610
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total fixed charges
|
|
23,547
|
|
|
47,432
|
|
|
41,004
|
|
|
39,488
|
|
|
16,988
|
|
|
3,115
|
|
||||||
Ratio of earnings to fixed charges
|
|
4.5
|
|
|
8.4
|
|
|
6.3
|
|
|
9.6
|
|
|
16.0
|
|
|
74.8
|
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting; and
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting; and
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act
of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|