Murphy Oil reports that it will be adding 200 fuel stations to Wal-Mart Stores (WMT) in the Southeast and the Midwest.
Wal-Mart Stores, Inc. (NYSE:WMT) are expected to add fuel stations owned by Murphy Oil Corporation (NYSE:MUR) at 200 supercenter locations in the Southeast and Midwest over the next three years. Murphy Oil is in the process of spinning off Murphy USA, which would include the company’s fuel selling operations. The deal would be between Wal-Mart and Murphy USA.
That the deal’s financial terms have not been released. Murphy Oil Corporation (NYSE:MUR) CEO Steven Cosse told BusinessWeek that the deal is “a significant step forward” for the company’s Murphy USA retail arm in its relationship with Wal-Mart Stores, Inc. (NYSE:WMT).
Murphy Oil announced in October that it would cut itself into two separate companies. Murphy Oil would focus on producing and exploring for oil, while Murphy USA would operate retail gas stations in more than 20 states. In addition Murphy USA would operate seven distribution terminals and ethanol production facilities in two states.
Shares of both Murphy Oil and Wal-Mart are both down a bit since the markets opened this morning. Murphy Oil shares dipped in the first part of the year before erasing their losses by December. Murphy Oil’s third-quarter earnings were down 44 percent in October due to weaker prices for natural gas and weakened retail marketing margins.
Shares of Wal-Mart have increased over the past year, with trading mostly flat around the $70 per share mark for the last six months. Wal-Mart Stores, Inc. (NYSE:WMT) has seen challenges in making sales as the low income customers it targets deal with high gas prices and unemployment levels. In spite of these issues, the retail chain reported third-quarter earnings that were 9 percent higher than the previous quarter.