Store Openings
The tables below reflect changes in our store portfolio in Q2 2026:
| | | | | | | | | | | | | | | | | | | | |
Net Change in Q2 2026 | | Murphy
USA / Express | | QuickChek | | Total |
| New-to-industry ("NTI") | | 5 | | | 1 | | | 6 | |
| Closed | | (1) | | | (2) | | | (3) | |
| Net change | | 4 | | | (1) | | | 3 | |
| | | | | | |
Net Change YTD in 2026 | | | | | | |
| NTI | | 11 | | | 1 | | | 12 | |
| Closed | | (1) | | | (5) | | | (6) | |
| Net change | | 10 | | | (4) | | | 6 | |
| | | | | | |
Raze-and-rebuilds reopened in Q2* | | 5 | | | — | | | 5 | |
| | | | | | |
| Raze-and-rebuilds reopened YTD* | | 6 | | | — | | | 6 | |
| | | | | | |
Store count at June 30, 2026* | | 1,659 | | | 147 | | 1,806 | |
| | | | | | |
Under Construction at End of Q2 | | | | | | |
| NTI | | 26 | | | 6 | | | 32 | |
| Raze-and-rebuilds* | | 4 | | | — | | | 4 | |
Total under construction at end of Q2 | | 30 | | | 6 | | | 36 | |
| | | | | | |
| *Store counts include raze-and-rebuild stores |
Financial Resources | | | | | | | | | | | | | | |
| | As of June 30, |
| Key Financial Metrics | | 2026 | | 2025 |
| Cash and cash equivalents ($ Millions) | | $ | 175.4 | | | $ | 54.1 | |
| | | | |
| | | | |
| Long-term debt, including finance lease obligations ($ Millions) | $ | 2,167.0 | | | $ | 2,066.7 | |
As of June 30, 2026, cash balances totaled $175.4 million. Long-term debt consisted of approximately $497.6 million in carrying value of 4.75% senior notes due 2029, $496.5 million in carrying value of 3.75% senior notes due 2031, $493.3 million in carrying value of 5.875% senior notes due 2034, and $580.6 million of term debt due 2032, combined with approximately $99.0 million in long-term finance leases. In addition, the revolving credit facility due 2030 was undrawn at quarter end.
During the quarter, we issued $500 million aggregate principal amount of 5.875% Senior Notes due 2034 (the "2034 Notes") pursuant to an indenture dated as of May 27, 2026 and retired $300 million 5.625% Senior Notes due 2027.
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended
June 30, | | Six Months Ended
June 30, |
| Key Financial Metric | | 2026 | | 2025 | | 2026 | | 2025 |
| Average shares outstanding (diluted) (in thousands) | 18,552 | | | 19,765 | | | 18,628 | | | 19,985 | |
At June 30, 2026, the Company had common shares outstanding of 18,380,347. Common shares repurchased during the quarter were approximately 143.1 thousand shares for $76.8 million. As of June 30, 2026, approximately $145.1 million remained available under the existing $1.5 billion 2023 authorization. In addition, the Company had $2.0 billion of capacity available under its previously announced share repurchase 2025 authorization, which becomes effective upon completion of the 2023 authorization and expires on December 31, 2030.
The effective income tax rate was approximately 24.7% for Q2 2026 compared to 24.4% in Q2 2025.
The Company paid a quarterly cash dividend on June 1, 2026 of $0.64 per share, or $2.56 per share on an annualized basis, a 28.0% year-over-year increase from June of 2025, for a total cash payment of $11.8 million. Year-to-date, the Company has paid $23.5 million in dividends, or $1.27 per share.
2026 Guidance Update
Concurrent with the earnings release, the Company is also providing a full-year guidance update (original guidance noted below along with current expectation for full-year results).
| | | | | | | | | | | | | |
| | 2026 Original Guidance Range | Current Expectation | | |
| Organic Growth | | | | | |
| New Stores | | 45 to 55 | Unchanged | | |
| Raze-and-Rebuilds | | Up to 30 | Low-end | | |
| Fuel Contribution | | | | | |
| Retail fuel volume per store (K gallons APSM) | | 233 to 237 | Unchanged | | |
| Retail fuel volume per store (same-store YoY %) | | (3.0)% to (1.0)% | Unchanged | | |
| Store Profitability | | | | | |
| Merchandise contribution ($ Millions) | | $890 to $900 | Low-end | | |
| Store OPEX excluding payment fees and rent ($K, APSM) | | $37.0 to $38.0 | Low-end | | |
| Corporate Costs | | | | | |
| SG&A ($ Millions) | | $240 to $250 | Low-end | | |
| Effective Tax Rate | | 23% to 25% | Higher-end | | |
| Capital Allocation | | | | | |
| Capital expenditures ($ Millions) | | $475 to $525 | Higher-end | | |
Now that we have completed the first half of 2026, we have a higher level of confidence in our guidance metrics in light of the changing conditions we have experienced in relation to our original budget.
•For fuel volume, we still expect to finish 2026 within the original range of our volume guidance for the gallons per store month metric and the same-store percentage metric. The ultimate outcome within the ranges is highly dependent on the macro fuel environment over that period, therefore no estimate is provided within the ranges.
•We expect full-year merchandise margin to be towards the low end of our guided range.
•On full-year store OPEX excluding payment fees and rent, we expect to be on the low-end of the guided range.
•SG&A costs are trending lower due to lower professional fees than planned partially offset by higher incentive expenses, therefore, we expect to be on the low-end of the original range.
•Income taxes should land towards the higher end of the range.
•Lastly, our capital expenditures remain on track to hit the high-end of our original guided range. NTI additions will be closer to 45 new stores in the calendar year, with the higher end still attainable through any small tuck-in purchases we might undertake. We continue to prioritize organic growth with our capital spending, ensuring our new store team is working diligently to deliver 2026 new stores, pulling forward construction of new stores scheduled to open in 2027, increasing investment in our land pipeline, and undertaking proactive maintenance activities across the network. As such, we expect to complete 10 raze and rebuilds this year.
* * * * *
Earnings Call Information
The Company will issue management commentary today, August 5, 2026 at approximately 3:30 p.m. Central Time and will host a webcasted question and answer session on August 6, 2026 at 10:00 a.m. Central Time to discuss second quarter 2026 results. Both the management commentary and live Q&A session can be accessed via the Investor Relations section of the Murphy USA website at https://ir.corporate.murphyusa.com. If you are unable to attend the Q&A session via webcast, the conference call number is 1 (833) 461-5787 and the conference ID number is 407414209. The earnings and investor related materials, including reconciliations of any non-GAAP financial measures to GAAP financial measures and any other applicable disclosures, will be available on that same day in the investor section of the Murphy USA website (https://ir.corporate.murphyusa.com). Approximately one hour after the conclusion of the live session, the webcast will be available for replay. Shortly thereafter, a transcript will be available.
Source: Murphy USA Inc. (NYSE: MUSA)
Forward-Looking Statements
This news release contains certain statements or may suggest “forward-looking” information (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties, including, but not limited to our 2026 financial and operating performance, anticipated store openings and associated capital expenditures, fuel margins, merchandise margins, sales of RINs, trends in our operations, dividends, and share repurchases. Such statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual future results may differ materially from historical results or current expectations depending upon factors including, but not limited to: our ability to continue to maintain a good business relationship with Walmart; successful execution of our growth strategy, including our ability to realize the anticipated benefits from such growth initiatives, and the timely completion of construction associated with our newly planned stores which may be impacted by the financial health of third parties; our ability to effectively manage our inventory, manage disruptions in our supply chain and our ability to control costs; geopolitical events, such as evolving trade policies and the imposition of reciprocal tariffs and the conflicts in the Middle East, that impact the supply and demand and price of crude oil; the impact of severe weather events, such as hurricanes, floods and earthquakes; the impact of a global health pandemic and any governmental response thereto; the impact of any systems failures, cybersecurity and/or security breaches of the company or its vendor partners, including any security breach that results in theft, transfer or unauthorized disclosure of customer, employee or company information or our compliance with information security and privacy laws and regulations in the event of such an incident; successful execution of our information technology strategy; reduced demand for our products due to the implementation of more stringent fuel economy and greenhouse gas reduction requirements, or increasingly widespread adoption of electric vehicle technology; future nicotine or e-cigarette legislation and any other efforts that make purchasing nicotine products more costly or difficult could hurt our revenues and impact gross margins; our ability to successfully expand our food and beverage offerings; efficient and proper allocation of our capital resources,
including the timing, declaration, amount and payment of any future dividends or levels of the Company's share repurchases, or management of operating cash; the market price of the Company's stock prevailing from time to time, the nature of other investment opportunities presented to the Company from time to time, the Company's cash flows from operations, and general economic conditions; compliance with debt covenants; availability and cost of credit; and changes in interest rates. Our SEC reports, including our most recent annual Report on Form 10-K and quarterly report on Form 10-Q, contain other information on these and other factors that could affect our financial results and cause actual results to differ materially from any forward-looking information we may provide. The Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.
| | | | | |
Investor Contacts: Christian Pikul Vice President, Investor Relations and Financial Planning and Analysis christian.pikul@murphyusa.com |
Ash Aulds Director, Investor Relations and Financial Planning and Analysis ash.aulds@murphyusa.com |
Murphy USA Inc.
Consolidated Statements of Income
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | Three Months Ended
June 30, | | Six Months Ended
June 30, |
| (Millions of dollars, except share and per share amounts) | | 2026 | | 2025 | | 2026 | | 2025 |
| Operating Revenues | | | | | | | | |
Petroleum product sales1 | | $ | 5,548.0 | | | $ | 3,851.4 | | | $ | 9,244.8 | | | $ | 7,341.2 | |
| Merchandise sales | | 1,132.1 | | | 1,092.4 | | | 2,181.3 | | | 2,091.8 | |
| Other operating revenues | | 126.0 | | | 61.2 | | | 199.3 | | | 97.4 | |
| Total operating revenues | | 6,806.1 | | | 5,005.0 | | | 11,625.4 | | | 9,530.4 | |
| | | | | | | | |
| Operating Expenses | | | | | | | | |
Petroleum product cost of goods sold1 | | 5,154.9 | | | 3,519.2 | | | 8,520.9 | | | 6,757.5 | |
| Merchandise cost of goods sold | | 904.7 | | | 873.7 | | | 1,743.7 | | | 1,677.2 | |
| | | | | | | | |
| Store and other operating expenses | | 308.7 | | | 275.2 | | | 588.5 | | | 541.3 | |
| Depreciation and amortization | | 72.2 | | | 66.0 | | | 144.3 | | | 134.2 | |
| | | | | | | | |
| Selling, general and administrative | | 60.5 | | | 50.9 | | | 117.1 | | | 111.0 | |
| | | | | | | | |
| Accretion of asset retirement obligations | | 0.9 | | | 0.8 | | | 1.8 | | | 1.7 | |
| | | | | | | | |
| Total operating expenses | | 6,501.9 | | | 4,785.8 | | | 11,116.3 | | | 9,222.9 | |
| | | | | | | | |
| | | | | | | | |
| Gain (loss) on sale of assets | | 0.7 | | | — | | | 1.0 | | | (0.3) | |
| Income (loss) from operations | | 304.9 | | | 219.2 | | | 510.1 | | | 307.2 | |
| | | | | | | | |
| Other income (expense) | | | | | | | | |
| Investment income (expense) | | 1.0 | | | 0.1 | | | 1.3 | | | — | |
| Interest expense | | (29.3) | | | (27.8) | | | (58.3) | | | (53.2) | |
| | | | | | | | |
| Other nonoperating income (expense) | | 1.0 | | | 1.0 | | | 0.7 | | | 0.4 | |
| Total other income (expense) | | (27.3) | | | (26.7) | | | (56.3) | | | (52.8) | |
| | | | | | | | |
| Income before income taxes | | 277.6 | | | 192.5 | | | 453.8 | | | 254.4 | |
| Income tax expense (benefit) | | 68.5 | | | 46.9 | | | 108.4 | | | 55.6 | |
| | | | | | | | |
| | | | | | | | |
| Net Income | | $ | 209.1 | | | $ | 145.6 | | | $ | 345.4 | | | $ | 198.8 | |
| | | | | | | | |
| Basic and Diluted Earnings Per Common Share: | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Basic | | $ | 11.34 | | | $ | 7.44 | | | $ | 18.69 | | | $ | 10.07 | |
| Diluted | | $ | 11.27 | | | $ | 7.36 | | | $ | 18.54 | | | $ | 9.95 | |
Weighted-average Common shares outstanding
(in thousands): | | | | | | | | |
| Basic | | 18,438 | | | 19,546 | | | 18,478 | | | 19,738 | |
| Diluted | | 18,552 | | | 19,765 | | | 18,628 | | | 19,985 | |
| Supplemental information: | | | | | | | | |
1Includes excise taxes of: | | $ | 604.4 | | | $ | 599.5 | | | $ | 1,169.4 | | | $ | 1,151.3 | |
Murphy USA Inc.
Segment Operating Results
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| (Millions of dollars, except revenue per same store sales (in thousands) and store counts) | | Three Months Ended
June 30, | | Six Months Ended
June 30, |
| Marketing Segment | | 2026 | | 2025 | | 2026 | | 2025 |
| | | | | | | | |
| Operating Revenues | | | | | | | | |
Petroleum product sales | | $ | 5,548.0 | | | $ | 3,851.4 | | | $ | 9,244.8 | | | $ | 7,341.2 | |
Merchandise sales | | 1,132.1 | | | 1,092.4 | | | 2,181.3 | | | 2,091.8 | |
Other operating revenues | | 125.9 | | | 61.2 | | | 199.2 | | | 97.3 | |
| Total operating revenues | | 6,806.0 | | | 5,005.0 | | | 11,625.3 | | | 9,530.3 | |
| | | | | | | | |
| Operating expenses | | | | | | | | |
Petroleum products cost of goods sold | | 5,154.9 | | | 3,519.2 | | | 8,520.9 | | | 6,757.5 | |
Merchandise cost of goods sold | | 904.7 | | | 873.7 | | | 1,743.7 | | | 1,677.2 | |
Store and other operating expenses | | 308.6 | | | 275.2 | | | 588.4 | | | 541.2 | |
Depreciation and amortization | | 65.8 | | | 59.6 | | | 131.7 | | | 121.1 | |
| | | | | | | | |
Selling, general and administrative | | 60.5 | | | 50.9 | | | 117.1 | | | 111.0 | |
Accretion of asset retirement obligations | | 0.9 | | | 0.8 | | | 1.8 | | | 1.7 | |
| Total operating expenses | | 6,495.4 | | | 4,779.4 | | | 11,103.6 | | | 9,209.7 | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Gain (loss) on sale of assets | | 0.7 | | | — | | | 1.0 | | | (0.3) | |
| Income (loss) from operations | | 311.3 | | | 225.6 | | | 522.7 | | | 320.3 | |
| | | | | | | | |
| Other income (expense) | | | | | | | | |
Interest expense | | (1.9) | | | (2.0) | | | (3.9) | | | (3.9) | |
| | | | | | | | |
| Total other income (expense) | | (1.9) | | | (2.0) | | | (3.9) | | | (3.9) | |
| | | | | | | | |
| | | | | | | | |
| Income (loss) before income taxes | | 309.4 | | | 223.6 | | | 518.8 | | | 316.4 | |
| Income tax expense (benefit) | | 76.6 | | | 55.7 | | | 124.1 | | | 69.4 | |
| Net income (loss) from operations | | $ | 232.8 | | | $ | 167.9 | | | $ | 394.7 | | | $ | 247.0 | |
| | | | | | | | |
| | | | | | | | |
Total nicotine sales revenue same store sales1,2 | | $ | 135.9 | | | $ | 133.1 | | | $ | 132.1 | | | $ | 128.1 | |
Total non-nicotine sales revenue same store sales1,2 | 76.1 | | | 77.4 | | | 72.3 | | | 73.4 | |
Total merchandise sales revenue same store sales1,2 | $ | 212.0 | | | $ | 210.5 | | | $ | 204.4 | | | $ | 201.5 | |
12025 amounts not revised for 2026 raze-and-rebuild activity |
2Includes store-level discounts for redemptions and excludes changes in value of unredeemed points associated with our loyalty program(s) |
| | | | | | | | |
| Store count at end of period | | 1,806 | | | 1,766 | | | 1,806 | | | 1,766 | |
| Total store months during the period | | 5,388 | | | 5,229 | | | 10,780 | | | 10,488 | |
Same store sales information compared to APSM metrics | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Variance from prior year period |
| | Three months ended | | Six months ended |
| | June 30, 2026 | | June 30, 2026 |
| | SSS1 | | APSM2 | | SSS1 | | APSM2 |
| Retail fuel volume per month | | 0.5 | % | | 0.3 | % | | (0.1%) | | | (0.2%) | |
| | | | | | | | |
| Merchandise sales | | 1.0 | % | | 0.6 | % | | 1.9% | | | 1.5% | |
| Nicotine sales | | 2.4 | % | | 1.9 | % | | 3.6% | | | 3.0% | |
| Non-nicotine sales | | (1.4) | % | | (1.5) | % | | (1.2%) | | | (1.1%) | |
| | | | | | | | |
| Merchandise margin | | 2.2 | % | | 0.9 | % | | 3.5% | | | 2.7% | |
| Nicotine margin | | 4.6 | % | | 3.0 | % | | 7.4% | | | 5.8% | |
| Non-nicotine margin | | 0.2 | % | | (0.2) | % | | —% | | | —% | |
1Includes store-level discounts for redemptions and excludes changes in value of unredeemed points associated with our loyalty program(s) |
2Includes all activity associated with our loyalty program(s) |
Notes
Average Per Store Month ("APSM") metric includes all stores open through the date of the calculation, including stores acquired during the period.
Same store sales ("SSS") metric includes aggregated individual store results for all stores open throughout both periods presented. For all periods presented, the store must have been open for the entire calendar year to be included in the comparison. Remodeled stores that remained open or were closed for just a very brief time (less than a month) during the period being compared remain in the same store sales calculation. If a store is replaced either at the same location (raze-and-rebuild) or relocated to a new location, it will be excluded from the calculation during the period it is out of service. Newly constructed stores do not enter the calculation until they are open for each full calendar year for the periods being compared (open by January 1, 2025 for the stores being compared in the 2026 versus 2025 comparison). Acquired stores are not included in the calculation of same store sales for the first 12 months after the acquisition. When prior period same store sales volumes or sales are presented, they have not been revised for current year activity for raze-and-rebuilds and asset dispositions.
Murphy USA Inc.
Consolidated Balance Sheets
| | | | | | | | | | | | | | |
| | | | |
(Millions of dollars, except share amounts) | | June 30,
2026 | | December 31, 2025 |
| | (unaudited) | | |
Assets | | | | |
Current assets | | | | |
Cash and cash equivalents | | $ | 175.4 | | | $ | 28.9 | |
| | | | |
Accounts receivable—trade, less allowance for doubtful accounts of $0.4 and $0.3 at 2026 and 2025, respectively | | 379.2 | | | 276.2 | |
Inventories, at lower of cost or market | | 417.4 | | | 413.0 | |
Prepaid expenses and other current assets | | 35.9 | | | 29.7 | |
| | | | |
Total current assets | | 1,007.9 | | | 747.8 | |
| | | | |
Property, plant and equipment, at cost less accumulated depreciation and amortization of $2,313.4 and $2,173.5 at 2026 and 2025, respectively | | 3,036.9 | | | 2,962.8 | |
| | | | |
| Operating lease right of use assets, net | | 539.1 | | | 526.3 | |
| Intangible assets, net of amortization | | 139.2 | | | 139.3 | |
| Goodwill | | 328.0 | | | 328.0 | |
Other assets | | 33.9 | | | 21.6 | |
| | | | |
Total assets | | $ | 5,085.0 | | | $ | 4,725.8 | |
| | | | |
Liabilities and Stockholders' Equity | | | | |
Current liabilities | | | | |
Current maturities of long-term debt | | $ | 19.1 | | | $ | 19.0 | |
Trade accounts payable and accrued liabilities | | 1,015.0 | | | 865.2 | |
Income taxes payable | | 55.6 | | | 44.9 | |
| | | | |
| | | | |
Total current liabilities | | 1,089.7 | | | 929.1 | |
| | | | |
Long-term debt, including capitalized lease obligations | | 2,167.0 | | | 2,163.6 | |
Deferred income taxes | | 404.2 | | | 388.5 | |
Asset retirement obligations | | 54.4 | | | 52.5 | |
| Non-current operating lease liabilities | | 549.4 | | | 534.6 | |
Deferred credits and other liabilities | | 37.6 | | | 34.0 | |
| | | | |
Total liabilities | | 4,302.3 | | | 4,102.3 | |
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 2026 and 2025 respectively | | 0.5 | | | 0.5 | |
Treasury stock (28,386,817 and 28,201,581 shares held at | | | | |
2026 and 2025, respectively) | | (4,162.1) | | | (4,031.7) | |
Additional paid in capital (APIC) | | 450.3 | | | 482.4 | |
Retained earnings | | 4,494.0 | | | 4,172.3 | |
| | | | |
Total stockholders' equity | | 782.7 | | | 623.5 | |
Total liabilities and stockholders' equity | | $ | 5,085.0 | | | $ | 4,725.8 | |
Murphy USA Inc.
Consolidated Statements of Cash Flows
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | Three Months Ended
June 30, | | Six Months Ended
June 30, |
| (Millions of dollars) | | 2026 | | 2025 | | 2026 | | 2025 |
| Operating Activities | | | | | | | | |
| Net income | | $ | 209.1 | | | $ | 145.6 | | | $ | 345.4 | | | $ | 198.8 | |
| Adjustments to reconcile net income (loss) to net cash provided (required) by operating activities | | | | | | | | |
Depreciation and amortization | | 72.2 | | | 66.0 | | | 144.3 | | | 134.2 | |
| | | | | | | | |
| | | | | | | | |
Deferred and noncurrent income tax charges (benefits) | | 6.4 | | | 1.3 | | | 15.7 | | | (0.1) | |
| Restructuring expense, net of cash paid | | (0.9) | | | — | | | (1.1) | | | — | |
Accretion of asset retirement obligations | | 0.9 | | | 0.8 | | | 1.8 | | | 1.7 | |
| | | | | | | | |
(Gains) losses from sale of assets | | (0.7) | | | — | | | (1.0) | | | 0.3 | |
Net (increase) decrease in noncash operating working capital | | (50.7) | | | 36.8 | | | 44.4 | | | 37.1 | |
| | | | | | | | |
Other operating activities - net | | (1.3) | | | 4.6 | | | 5.5 | | | 11.6 | |
| Net cash provided (required) by operating activities | | 235.0 | | | 255.1 | | | 555.0 | | | 383.6 | |
| Investing Activities | | | | | | | | |
| Property additions | | (111.7) | | | (118.0) | | | (210.0) | | | (205.8) | |
| | | | | | | | |
| Proceeds from sale of assets | | 0.5 | | | 1.5 | | | 0.7 | | | 1.8 | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Other investing activities - net | | 9.9 | | | (0.1) | | | 9.5 | | | (0.3) | |
| Net cash provided (required) by investing activities | | (101.3) | | | (116.6) | | | (199.8) | | | (204.3) | |
| Financing Activities | | | | | | | | |
| Purchase of treasury stock | | (82.3) | | | (213.8) | | | (152.8) | | | (363.8) | |
| Dividends paid | | (11.8) | | | (9.8) | | | (23.5) | | | (19.6) | |
| Borrowings of debt | | 727.0 | | | 1,112.3 | | | 1,317.0 | | | 1,782.3 | |
| Repayments of debt | | (696.8) | | | (1,013.0) | | | (1,314.6) | | | (1,543.0) | |
| Debt issuance costs | | (1.9) | | | (8.9) | | | (1.9) | | | (8.9) | |
| | | | | | | | |
| Amounts related to share-based compensation | | (11.1) | | | (0.6) | | | (32.9) | | | (19.2) | |
| Net cash provided (required) by financing activities | | (76.9) | | | (133.8) | | | (208.7) | | | (172.2) | |
| Net increase (decrease) in cash, cash equivalents and restricted cash | | 56.8 | | | 4.7 | | | 146.5 | | | 7.1 | |
| Cash, cash equivalents and restricted cash at beginning of period | | 118.6 | | | 49.4 | | | 28.9 | | | 47.0 | |
| Cash, cash equivalents and restricted cash at end of period | | $ | 175.4 | | | $ | 54.1 | | | $ | 175.4 | | | $ | 54.1 | |
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Supplemental Disclosure Regarding Non-GAAP Financial Information
The following table reconciles EBITDA and Adjusted EBITDA to Net Income for the three and six months ended June 30, 2026 and 2025. EBITDA means net income (loss) plus net interest expense, plus income tax expense, depreciation and amortization, and Adjusted EBITDA adds back (i) other non-cash items (e.g., impairment of properties and accretion of asset retirement obligations) and (ii) other items that management does not consider to be meaningful in assessing our operating performance (e.g., (income) from discontinued operations, net settlement proceeds, (gain) loss on sale of assets, loss on early debt extinguishment, transaction and integration costs related to acquisitions, restructuring expenses, and other non-operating (income) expense). EBITDA and Adjusted EBITDA are not measures that are prepared in accordance with U.S. generally accepted accounting principles (GAAP).
We use Adjusted EBITDA in our operational and financial decision-making, believing that the measure is useful to eliminate certain items in order to focus on what we deem to be a more reliable indicator of ongoing operating performance and our ability to generate cash flow from operations. Adjusted EBITDA is also used by many of our investors, research analysts, investment bankers, and lenders to assess our operating performance. We believe that the presentation of Adjusted EBITDA provides useful information to investors because it allows understanding of a key measure that we evaluate internally when making operating and strategic decisions, preparing our annual plan, and evaluating our overall performance. However, non-GAAP measures are not a substitute for GAAP disclosures, and EBITDA and Adjusted EBITDA may be prepared differently by us than by other companies using similarly titled non-GAAP measures.
The reconciliation of net income (loss) to EBITDA and Adjusted EBITDA is as follows:
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| | Three Months Ended
June 30, | | Six Months Ended
June 30, |
(Millions of dollars) | | 2026 | | 2025 | | 2026 | | 2025 |
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| Net income | | $ | 209.1 | | | $ | 145.6 | | | $ | 345.4 | | | $ | 198.8 | |
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Income tax expense (benefit) | | 68.5 | | | 46.9 | | | 108.4 | | | 55.6 | |
Interest expense, net of investment income | | 28.3 | | | 27.7 | | | 57.0 | | | 53.2 | |
Depreciation and amortization | | 72.2 | | | 66.0 | | | 144.3 | | | 134.2 | |
EBITDA | | $ | 378.1 | | | $ | 286.2 | | | $ | 655.1 | | | $ | 441.8 | |
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Accretion of asset retirement obligations | | 0.9 | | | 0.8 | | | 1.8 | | | 1.7 | |
(Gain) loss on sale of assets | | (0.7) | | | — | | | (1.0) | | | 0.3 | |
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Other nonoperating (income) expense | | (1.0) | | | (1.0) | | | (0.7) | | | (0.4) | |
Adjusted EBITDA | | $ | 377.3 | | | $ | 286.0 | | | $ | 655.2 | | | $ | 443.4 | |
Required Non-GAAP Reconciliation
An itemized reconciliation of Adjusted EBITDA to Net Income for the full year 2026 outlook, is as follows:
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| Calendar Year 2026 Outlook |
| (Millions of dollars) | |
| Net Income | $636 |
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| Income taxes | $203 |
| Interest expense, net of investment income | $115 |
| Depreciation and amortization | $295 |
| Other operating and nonoperating, net | $1 |
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| Adjusted EBITDA | $1,250 |
As noted in the earnings release quote, using all-in fuel margins of 35 cpg for the second half of 2026, combined with the actual results from the first half, management would expect the business to generate Net Income of $636 million , which would translate to expected Adjusted EBITDA of approximately $1.25 billion.
