2024 Q2 Form 10-Q Financial Statement

#000157351624000046 Filed on August 01, 2024

View on sec.gov

Income Statement

Concept 2024 Q2
Revenue $5.452B
YoY Change -2.39%
Cost Of Revenue $4.844B
YoY Change -3.35%
Gross Profit $607.6M
YoY Change 6.0%
Gross Profit Margin 11.15%
Selling, General & Admin $59.10M
YoY Change -18.6%
% of Gross Profit 9.73%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $59.30M
YoY Change 2.6%
% of Gross Profit 9.76%
Operating Expenses $59.10M
YoY Change -84.22%
Operating Profit $217.1M
YoY Change 9.32%
Interest Expense $24.90M
YoY Change -207.33%
% of Operating Profit 11.47%
Other Income/Expense, Net -$23.90M
YoY Change -12050.0%
Pretax Income $193.2M
YoY Change 9.96%
Income Tax $48.40M
% Of Pretax Income 25.05%
Net Earnings $144.8M
YoY Change 9.04%
Net Earnings / Revenue 2.66%
Basic Earnings Per Share $7.02
Diluted Earnings Per Share $6.92
COMMON SHARES
Basic Shares Outstanding 20.64M shares
Diluted Shares Outstanding 20.92M shares

Balance Sheet

Concept 2024 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $84.30M
YoY Change -20.4%
Cash & Equivalents $79.80M
Short-Term Investments $4.500M
Other Short-Term Assets $33.40M
YoY Change -8.99%
Inventory $315.9M
Prepaid Expenses $33.40M
Receivables $386.5M
Other Receivables $0.00
Total Short-Term Assets $820.1M
YoY Change 7.46%
LONG-TERM ASSETS
Property, Plant & Equipment $3.119B
YoY Change 5.76%
Goodwill $328.0M
YoY Change 0.0%
Intangibles $139.6M
YoY Change -0.43%
Long-Term Investments $3.000M
YoY Change -59.46%
Other Assets $20.30M
YoY Change 18.71%
Total Long-Term Assets $3.610B
YoY Change 4.89%
TOTAL ASSETS
Total Short-Term Assets $820.1M
Total Long-Term Assets $3.610B
Total Assets $4.430B
YoY Change 5.35%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $924.0M
YoY Change 18.54%
Accrued Expenses $21.90M
YoY Change 4.78%
Deferred Revenue
YoY Change
Short-Term Debt $0.00
YoY Change
Long-Term Debt Due $15.60M
YoY Change 4.7%
Total Short-Term Liabilities $970.7M
YoY Change 19.06%
LONG-TERM LIABILITIES
Long-Term Debt $1.781B
YoY Change -0.33%
Other Long-Term Liabilities $510.9M
YoY Change 4.5%
Total Long-Term Liabilities $2.292B
YoY Change 0.71%
TOTAL LIABILITIES
Total Short-Term Liabilities $970.7M
Total Long-Term Liabilities $2.292B
Total Liabilities $3.619B
YoY Change 4.77%
SHAREHOLDERS EQUITY
Retained Earnings $3.471B
YoY Change 16.56%
Common Stock $500.0K
YoY Change 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $811.3M
YoY Change
Total Liabilities & Shareholders Equity $4.430B
YoY Change 5.35%

Cashflow Statement

Concept 2024 Q2
OPERATING ACTIVITIES
Net Income $144.8M
YoY Change 9.04%
Depreciation, Depletion And Amortization $59.30M
YoY Change 2.6%
Cash From Operating Activities $260.8M
YoY Change 52.34%
INVESTING ACTIVITIES
Capital Expenditures $118.0M
YoY Change 62.76%
Acquisitions
YoY Change
Other Investing Activities $3.500M
YoY Change -537.5%
Cash From Investing Activities -$114.5M
YoY Change 56.21%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -123.2M
YoY Change 15.03%
NET CHANGE
Cash From Operating Activities 260.8M
Cash From Investing Activities -114.5M
Cash From Financing Activities -123.2M
Net Change In Cash 23.10M
YoY Change -351.09%
FREE CASH FLOW
Cash From Operating Activities $260.8M
Capital Expenditures $118.0M
Free Cash Flow $142.8M
YoY Change 44.68%

Facts In Submission

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us-gaap Asset Retirement Obligation Liabilities Incurred
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CY2024Q2 us-gaap Asset Retirement Obligation
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CY2023Q4 us-gaap Asset Retirement Obligation
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us-gaap Allocated Share Based Compensation Expense
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us-gaap Employee Service Share Based Compensation Tax Benefit From Exercise Of Stock Options
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CY2024Q2 us-gaap Derivative Collateral Right To Reclaim Cash
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CY2023Q4 us-gaap Derivative Collateral Right To Reclaim Cash
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us-gaap Net Income Loss
NetIncomeLoss
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us-gaap Net Income Loss
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us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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us-gaap Earnings Per Share Diluted
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us-gaap Earnings Per Share Diluted
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CY2023Q2 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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us-gaap Interest Paid Net
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IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
6600000 usd
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us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
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us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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us-gaap Increase Decrease In Income Taxes Payable Net Of Income Taxes Receivable
IncreaseDecreaseInIncomeTaxesPayableNetOfIncomeTaxesReceivable
8000000.0 usd
us-gaap Increase Decrease In Income Taxes Payable Net Of Income Taxes Receivable
IncreaseDecreaseInIncomeTaxesPayableNetOfIncomeTaxesReceivable
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us-gaap Increase Decrease In Operating Capital
IncreaseDecreaseInOperatingCapital
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us-gaap Increase Decrease In Operating Capital
IncreaseDecreaseInOperatingCapital
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us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
Contingencies<span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s operations and earnings have been and may be affected by various forms of governmental action. Examples of such governmental action include, but are by no means limited to: tax increases and retroactive tax claims; import and export controls; price controls; allocation of supplies of crude oil and petroleum products and other goods; laws and regulations intended for the promotion of safety and the protection and/or remediation of the environment; governmental support for other forms of energy; and laws and regulations affecting the Company’s relationships with employees, suppliers, customers, stockholders and others. Because governmental actions are often motivated by political considerations, may be taken without full consideration of their consequences, and may be taken in response to actions of other governments, it is not practical to attempt to predict the likelihood of such actions, the form the actions may take or the effect such actions may have on the Company.</span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">ENVIRONMENTAL MATTERS AND LEGAL MATTERS — Murphy USA is subject to numerous federal, state and local laws and regulations dealing with the environment. Violation of such environmental laws, regulations and permits can result in the imposition of significant civil and criminal penalties, injunctions and other sanctions. A discharge of hazardous substances into the environment could, to the extent such event is not insured, subject the Company to substantial expense, including both the cost to comply with applicable regulations and claims by neighboring landowners and other third parties for any personal injury, property damage and other losses that might result.</span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company currently owns or leases, and has in the past owned or leased, properties at which hazardous substances have been or are being handled. Although the Company believes it has used operating and disposal practices that were standard in the industry at the time, hazardous substances may have been disposed of or released on or under the properties owned or leased by the Company or on or under other locations where they have been taken for disposal. In addition, many of these properties have been operated by third parties whose management of hazardous substances was not under the Company’s control. Under existing laws, the Company could be required to remediate contaminated property (including contaminated groundwater) or to perform remedial actions to prevent future contamination. Certain of these contaminated properties are in various stages of negotiation, investigation, and/or cleanup, and the Company is investigating the extent of any related liability and the availability of applicable defenses. With the sale of the U.S. refineries in 2011, Murphy Oil retained certain liabilities related to environmental matters. Murphy Oil also obtained insurance covering certain levels of environmental exposures. With respect to the previously owned refinery properties, Murphy Oil retained those liabilities in the Separation and Distribution agreement that was entered into related to the separation on August 30, 2013. With respect to any remaining potential liabilities, based on information currently available to the Company, the Company believes costs related to these properties will not have a material adverse effect on Murphy USA’s net income, financial condition or liquidity in a future period.</span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">While it is possible that certain environmental expenditures could be recovered by the Company from other sources, primarily environmental funds maintained by certain states, no assurance can be given that future recoveries from other sources will occur. As such, the Company has not recorded a benefit for likely recoveries at June 30, 2024, however certain jurisdictions provide reimbursement for these expenses which have been </span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">considered in recording the net exposure. The U.S. Environmental Protection Agency (EPA) currently considers the Company a Potentially Responsible Party (PRP) at one Superfund site. As to the site, the potential total cost to all parties to perform necessary remedial work at this site may be substantial. However, based on current negotiations and available information, the Company believes that it is a de minimis party as to ultimate responsibility at the Superfund site. Accordingly, the Company has not recorded a liability for remedial costs at the Superfund site at June 30, 2024. The Company could be required to bear a pro rata share of costs attributable to nonparticipating PRPs or could be assigned additional responsibility for remediation at this site or other Superfund sites. Based on information currently available to the Company, the Company believes that its share of the ultimate costs to clean up this site will be immaterial and will not have a material adverse effect on its net income, financial condition or liquidity in a future period.</span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Based on information currently available to the Company, the amount of future remediation costs to be incurred to address known contamination sites is not expected to have a material adverse effect on the Company’s future net income, cash flows or liquidity. However, there is the possibility that additional environmental expenditures could be required to address contamination, including as a result of discovering additional contamination or the imposition of new or revised requirements applicable to known contamination.</span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Murphy USA is engaged in a number of other legal proceedings, all of which the Company considers routine and incidental to its business. Currently, the City of Charleston, South Carolina, and the State of Delaware have filed lawsuits against energy companies, including the Company. These lawsuits allege damages as a result of climate change and the plaintiffs are seeking unspecified damages and abatement under various tort theories. At this early stage, the ultimate outcome of these matters remain uncertain, and neither the likelihood of an unfavorable outcome nor the ultimate liability, if any, can be determined. Based on information currently available to the Company, the ultimate resolution of these other legal matters is not expected to have a material adverse effect on the Company’s net income, financial condition or liquidity in a future period.</span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">INSURANCE — The Company maintains insurance coverage at levels that are customary and consistent with industry standards for companies of similar size. Murphy USA maintains statutory workers compensation insurance with a deductible of $1.0 million per occurrence, general liability insurance with a self-insured retention of $3.0 million per occurrence, and auto liability insurance with a deductible of $0.3 million per occurrence. As of June 30, 2024, there were a number of outstanding claims that are of a routine nature. The estimated incurred but unpaid liabilities relating to these claims are included in Trade account payables and accrued liabilities on the Consolidated Balance Sheets. While the ultimate outcome of these claims cannot presently be determined, management believes that the accrued liability of $48.1 million will be sufficient to cover the related liability for all insurance claims and that the ultimate disposition of these claims will have no material effect on the Company’s financial position and results of operations.</span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company has obtained insurance coverage as appropriate for the business in which it is engaged but may incur losses that are not covered by insurance or reserves, in whole or in part, and such losses could adversely affect our results of operations and financial position.</span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">TAX MATTERS — Murphy USA is subject to extensive tax liabilities imposed by multiple jurisdictions, including income taxes, indirect taxes (excise/duty, sales/use and gross receipts taxes), payroll taxes, franchise taxes, withholding taxes and ad valorem taxes. New tax laws and regulations and changes in existing tax laws and regulations are continuously being enacted or proposed that could result in increased expenditures for tax liabilities in the future. Many of these liabilities are subject to periodic audits by the respective taxing authority. Subsequent changes to our tax liabilities because of these audits may subject us to interest and penalties.</span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">OTHER MATTERS — In the normal course of its business, the Company is required under certain contracts with various governmental authorities and others to provide financial guarantees or letters of credit that may be drawn upon if the Company fails to perform under those contracts. At June 30, 2024, the Company had contingent liabilities of $8.8 million on outstanding letters of credit. The Company has not accrued a liability in its balance sheet related to these financial guarantees and letters of credit because it is believed that the likelihood of having these drawn is remote.</span></div>
musa Number Of Superfund Sites For Which Company May Be Liable
NumberOfSuperfundSitesForWhichCompanyMayBeLiable
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OperatingLeaseLiabilityNoncurrent
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us-gaap Operating Lease Cost
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FinanceLeaseRightOfUseAssetAmortization
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FinanceLeaseInterestExpense
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FinanceLeaseInterestExpense
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us-gaap Finance Lease Interest Expense
FinanceLeaseInterestExpense
4200000 usd
us-gaap Finance Lease Interest Expense
FinanceLeaseInterestExpense
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20200000 usd
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us-gaap Lease Cost
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us-gaap Lease Cost
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38800000 usd
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OperatingLeasePayments
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us-gaap Finance Lease Interest Payment On Liability
FinanceLeaseInterestPaymentOnLiability
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FinanceLeasePrincipalPayments
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FinanceLeasePrincipalPayments
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27300000 usd
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LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
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LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
54500000 usd
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FinanceLeaseLiabilityPaymentsDueYearTwo
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LesseeOperatingLeaseLiabilityPaymentsDueYearThree
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FinanceLeaseLiabilityPaymentsDueYearThree
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LesseeOperatingLeaseLiabilityPaymentsDueYearFour
53200000 usd
CY2024Q2 us-gaap Finance Lease Liability Payments Due Year Four
FinanceLeaseLiabilityPaymentsDueYearFour
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CY2024Q2 musa Lessee Operating Lease Liability To Be Paid After Year Four
LesseeOperatingLeaseLiabilityToBePaidAfterYearFour
582800000 usd
CY2024Q2 musa Finance Lease Liability To Be Paid After Year Four
FinanceLeaseLiabilityToBePaidAfterYearFour
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CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
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CY2024Q2 us-gaap Finance Lease Liability Payments Due
FinanceLeaseLiabilityPaymentsDue
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CY2024Q2 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
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CY2024Q2 us-gaap Finance Lease Liability Undiscounted Excess Amount
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CY2024Q2 us-gaap Operating Lease Liability
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CY2024Q2 us-gaap Finance Lease Liability
FinanceLeaseLiability
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FinanceLeaseWeightedAverageRemainingLeaseTerm1
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CY2024Q2 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P15Y
CY2024Q2 us-gaap Finance Lease Weighted Average Discount Rate Percent
FinanceLeaseWeightedAverageDiscountRatePercent
0.068
CY2024Q2 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.067
us-gaap Number Of Operating Segments
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1 segment
CY2024Q2 us-gaap Assets
Assets
4429900000 usd
CY2024Q2 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
5451700000 usd
CY2024Q2 us-gaap Net Income Loss
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144800000 usd
CY2023Q2 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
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132800000 usd
us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
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us-gaap Net Income Loss
NetIncomeLoss
210800000 usd
us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
10662600000 usd
us-gaap Net Income Loss
NetIncomeLoss
239100000 usd

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R72.htm Edgar Link pending
R73.htm Edgar Link pending
R74.htm Edgar Link pending
R75.htm Edgar Link pending
R8.htm Edgar Link pending
R9.htm Edgar Link pending
report.css Edgar Link pending
Show.js Edgar Link pending
musa-20240630_cal.xml Edgar Link unprocessable