May 07 - Murphy Oil Announces Acquisition of Property for Murphy USA Gasoline Stations

Source Press Release
Company Murphy Oil Corporation 
Tags Refining & Marketing Activities
Date May 03, 2007

Murphy Oil Corporation announced today that its wholly owned subsidiary, Murphy Oil USA, Inc. (Company), has entered into an Agreement with Wal-Mart Stores, Inc. and subsidiaries to purchase parcels of property which the Company currently leases from Wal-Mart for its Murphy USA® retail gasoline stations.

Murphy USA’s retail presence currently covers twenty-one states primarily in the Southeast and upper Midwest. As a result of this transaction, capital expenditures for the Company are expected to increase by up to approximately $315 million during the 2007/2008 period.

Under the terms of the Agreement, the conveyance of the parcels will occur in multiple phases over the next year. Expansion of the Murphy USA program will continue with additional opportunities to purchase new site locations in the future. In conjunction with this agreement, the Company plans to close up to 47 locations and incur after-tax impairment and restoration costs of approximately $18 million in the second quarter of 2007 which was not included in previously issued earnings guidance.

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