#Canada #Calgary #Parkland Corporation #CEO Transition #Bob Espey

Parkland Corporation Announces Management and Business Updates

On April 16, 2025, Parkland Corporation made headlines with its announcement regarding pivotal changes in leadership and operations. The company’s President and CEO, Bob Espey, has decided to step down, marking a significant transition for the organization. This news was shared with the press during a specially convened meeting, emphasizing Espey's invaluable contribution over the past fifteen years.

Michael Jennings, the newly appointed Executive Chair, expressed profound gratitude towards Espey for pioneering Parkland’s growth from a regional fuel distributor into a leading fuel and convenience retailer operating in twenty-six countries. Espey himself acknowledged the meaningful experience of serving as CEO, reflecting on the dedication of the Parkland team throughout his tenure. He conveyed confidence in the future and expressed eagerness to assist with the leadership transition.

CEO Transition and Search Committee Formation

In anticipation of finding a suitable replacement for Espey, the Board of Directors has established a CEO search committee. This committee is composed of independent directors and is tasked with identifying a qualified successor. Until the new CEO is appointed, Espey will remain in his position to ensure operational continuity. He will stay on until a new CEO is appointed, the strategic review is complete, or December 31, 2025, whichever comes first.

Simultaneously, Jennings is set to guide the governance of Parkland and oversee a strategic review designed to maximize shareholder value. This review includes assessing the current business strategy and exploring opportunities for optimization, asset divestments, and possible transformation of the business. James Neate has been appointed as the Lead Independent Director to enhance the effectiveness of the Board.

Preliminary Q1 2025 Results Amid Regulatory Challenges

Parkland’s announcement included preliminary financial insights for the first quarter of 2025. Despite a diversified and resilient business structure, the company anticipates significant challenges due to evolving regulatory conditions that are impacting fuel demand and pricing margins in both Canada and the U.S.

The complexities of this macroeconomic environment have created additional complications, especially regarding refined product transactions between Canada and the U.S. As a result, Parkland expects an Adjusted EBITDA of approximately $375 million for Q1 2025, influenced by recent commercial strategies. These outcomes signify that while the base business remains stable, certain decisions, such as exiting the Californian compliance market, have incurred charges of about $55 million.

Regional Performance Breakdown

Diving deeper into the financial segments, Parkland predicts the following Adjusted EBITDA contributions for Q1:

• - Canada: Approximately $110 million, reflecting steadiness in fuel retailing operations amidst market dynamics.
• - International: Expected at around $181 million, benefitting from robust performance in South America and favorable currency exchange rates.
• - USA: Estimated at $16 million, under pressure from market conditions affecting both fuel demand and unit margins.
• - Refining Sector: Set to yield roughly $79 million, bolstered by successful maintenance and favorable market conditions.

Given the fluctuations in economic circumstances, Parkland cautions that the 2025 Adjusted EBITDA guidance could be closer to the lower end of the previously announced range of $1.8 billion to $2.1 billion.

Looking Ahead and Upcoming Events

Looking forward, Parkland is scheduled to release its complete Q1 2025 results post-market close on May 5, 2025. Additionally, the Annual General Meeting of Shareholders will be held at 9:00 a.m. MT on May 6, 2025, in Calgary, Alberta, producing further insights into the operational direction of the company post-leadership transition.

In closing, Parkland Corporation continues to navigate a complex landscape, with leadership changes and economic volatility presenting both challenges and opportunities. Stakeholders will be keenly watching how these transitions will shape the future strategy and operational performance of this industry leader.