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Overview of Parkland Corporation's Normal Course Issuer Bid (NCIB)

Parkland Corporation, a prominent player in the fuel distribution and retail sector, has officially announced a new normal course issuer bid (NCIB) approved by the Toronto Stock Exchange (TSX). This initiative will enable Parkland to repurchase up to 13,814,717 common shares, representing 10% of its public float as defined by the TSX as of November 18, 2024. On that date, Parkland reported a total of 173,781,684 issued and outstanding shares.

Details of the Issuer Bid

The newly established NCIB commenced on December 1, 2024, and will continue until the earliest of the following conditions are met: the completion of share repurchases reaching the maximum allowable limit of 13,814,717 shares, the date of November 30, 2025, or the termination of the NCIB by the company.

The primary purpose of the NCIB is to enhance shareholder returns through capital distributions in the form of dividends. Parkland believes that at times, its market share price may not accurately reflect its intrinsic value. Therefore, repurchasing its shares under the NCIB presents an attractive investment opportunity to bolster shareholder value, aligning with Parkland’s capital allocation strategy.

Purchasing Process

All repurchases under the NCIB will be executed through the TSX or other alternative trading systems in Canada at market prices prevailing at that time. As per TSX guidelines, daily purchases, excluding any block purchase exceptions, are capped at 136,675 shares, which equates to 25% of the average daily trading volume of 546,700 on the TSX over the six months ending on October 31, 2024.

To facilitate share repurchases during predetermined blackout periods and other times when the company would typically be restricted from buying shares, Parkland has implemented an Automatic Share Purchase Plan (ASPP) with its designated broker. This ASPP allows for purchases to be made at the broker's sole discretion, adhering to the prescribed purchasing parameters established by Parkland according to TSX regulations, necessary securities laws, and ASPP terms. Current purchases will be aggregated with those made through the ASPP to tally the total shares repurchased under the NCIB.

Continuation of Existing NCIB

This newly introduced NCIB follows the company's existing program, which has been running since December 1, 2023. Under the existing NCIB, Parkland has acquired approval to buy back up to 14,056,984 shares until November 30, 2024. As of now, Parkland has already repurchased 3,107,038 shares from the open market at an average purchase price of CAD 42.67 per share.

There are, however, no assurances regarding the exact number of shares that will be repurchased under the NCIB, which might be halted at any moment due to compliance with regulatory requirements.

Future Outlook

This announcement signifies Parkland's ongoing commitment to optimizing shareholder value and its strategic approach towards share repurchases. The company also remains dedicated to navigating potential risks that may arise in the market or regulatory landscape, continuously evaluating its operational effectiveness and adapting to emerging challenges.

In summary, Parkland Corporation’s normal course issuer bid represents a pivotal strategy intended to enhance shareholder returns while strategically managing its share value amidst fluctuating market conditions. The company’s history and interest in sustaining strong financial performance drives its proactive measures regarding share repurchases.

About Parkland Corporation

Parkland Corporation is a leading international fuel distributor and convenience store retailer with operations spanning 26 countries across the Americas. Serving over a million customers daily, Parkland offers a wide array of fuel options while promoting environmental sustainability through renewable fuels and innovative energy solutions. With approximately 4,000 retail outlets in Canada, the U.S., and the Caribbean region, Parkland harnesses its customer and supply chain advantages to achieve market leadership. The company is founded on values of safety, integrity, community, and respect, which pervade its operational ethos.