Murphy USA (MUSA) risk factors, FY2024 10-K

Other

1. 01You should carefully consider each of the following risks and all of the other information contained in this Annual Report on Form 10-K

Risks Relating to Our Company

1. 02Our business and our reputation could be adversely affected by the failure to protect sensitive customer, employee or vendor data or to comply with applicable regulations relating to data security and privacy
2. 03Our operations present hazards and risks, which may not be fully covered by insurance, if insured. If a significant accident or event occurs for which we are not adequately insured, our operations and financial results could be adversely affected
3. 04Our indebtedness could restrict our business and adversely impact our financial condition, results of operations or cash flows; our leverage could increase the overall cost of debt funding and decrease the overall debt capacity and commercial credit available to us in the future
4. 05Any of the above-listed factors could have an adverse effect on our business, financial condition and results of operations
5. 06Our ability to meet our payment obligations under the notes and our other debt depends on our ability to generate significant cash flow in the future
6. 07Despite our current indebtedness levels, we may be able to incur substantially more debt. This could exacerbate further the risks associated with our leverage
7. 08Failure to maintain the quality and safety of our food products could adversely impact our reputation and business
8. 09We may need to recognize impairment charges related to goodwill, identified intangible assets and fixed assets
9. 10The anticipated benefits of the QuickChek acquisition may not be realized or those benefits may take longer to realize than expected
10. 11levels of revenue, earnings, or operating efficiency that we and QuickChek have achieved to-date, or might have achieved separately

Risks Relating to Our Business

1. 12Volatility in the global prices of oil and petroleum products and general economic conditions that are largely out of our control, as well as seasonal variations in fuel pricing, can significantly affect our operating results
2. 13We are exposed to risks associated with the interruption of supply and increased costs as a result of our reliance on third-party supply and transportation of refined products
3. 14An inability to maintain a multi-year new store project pipeline may cause our Company's growth to slow in 2025 and beyond
4. 15We currently have one primary supplier for over 78% of our merchandise. A disruption in supply could have a material effect on our business
5. 16Changes in credit card expenses could reduce our profitability, especially on gasoline
6. 17Walmart continues to be a key relationship with regard to our Murphy USA network
7. 18Walmart retains certain rights in its agreements with us, which may adversely impact our ability to conduct our business
8. 19The current level of revenue that is generated from RINs may be highly variable
9. 20We could be adversely affected if we are not able to attract and retain qualified personnel
10. 21Capital financing may not always be available to fund our activities

Risks Relating to Our Industry

1. 22We operate in a highly competitive industry, which could adversely affect us in many ways, including our profitability, our ability to grow, and our ability to manage our businesses
2. 23Future nicotine legislation and/or regulation, potential court rulings affecting the nicotine industry, campaigns to discourage smoking, increases in nicotine taxes and wholesale cost increases of nicotine products could have a material adverse impact on our retail operating revenues and gross margin
3. 24Changes in consumer behavior and travel as a result of changing economic conditions, the development of alternative energy technologies or otherwise could affect our business
4. 25Our operations and earnings have been and will continue to be affected by worldwide political developments
5. 26Our business is subject to operational hazards and risks normally associated with the marketing of petroleum products
6. 27We are subject to various environmental laws, regulations and permit requirements, which could expose us to significant expenditures, liabilities or obligations and reduce product demand
7. 28We rely on our technology systems and network infrastructure to manage numerous aspects of our business, and a disruption of these systems could adversely affect our business
8. 29Our retail operations are subject to extensive government laws and regulations, and the cost of compliance with such laws and regulations can be material
9. 30Future consumer or other litigation could adversely affect our business, financial condition, results of operations and cash flows
10. 31Compliance with and changes in tax laws could adversely affect our performance
11. 32Pandemics or disease outbreaks, such as COVID-19, may disrupt consumption and trade patterns, supply chains and normal business activities, which could materially affect our operations and results of operations

Risks Relating to Our Common Stock

1. 33The price of our common stock may fluctuate significantly and if securities or industry analysts publish unfavorable research reports about our business or if they downgrade their rating on our common stock, the price of our common stock could decline
2. 34Provisions in our Certificate of Incorporation and Bylaws and certain provisions of Delaware law could delay or prevent a change in control of us
3. 35We may issue preferred stock with terms that could dilute the voting power or reduce the value of our common stock