Mr. Bob Espey reports

PARKLAND REPORTS 2024 FIRST QUARTER RESULTS

Parkland Corp. has released its financial and operating results for the three months ended March 31, 2024.

"The team continues to deliver on our strategy and optimize our portfolio," said Bob Espey, president and chief executive officer. "We have identified more than $400-million of non-core assets for disposition, many of which have been sold or are in the advanced stages of negotiation. This represents more than 80 per cent of our $500-million target by the end of 2025.

"I have full confidence in our team's ability to execute our operational plan that leverages our customer advantage and unique supply benefits despite headwinds in some of the markets where we operate," added Mr. Espey. "We expect to deliver our 2024 adjusted [earnings before interest, taxes, depreciation and amortization] guidance range of $1.95-billion to $2.05-billion, and see a clear pathway to achieving a leverage ratio at the low end of our two to three times target range by the end of 2025."

First quarter 2024 highlights:

• Adjusted EBITDA of $327-million, a decrease of 17 per cent as compared with the first quarter of 2023, driven by an unplanned shutdown of the Burnaby refinery, which began as a result of extreme cold weather and was extended by technical issues during the subsequent start-up; the Burnaby refinery safely returned to normal operations on March 29, 2024;
• Net loss of $5-million (three cents per share, basic), a decrease of $82-million as compared with the first quarter of 2023, and adjusted earnings of $43-million (25 cents per share, basic), a decrease of $71-million from the first quarter of 2023;
• Trailing 12-month available cash flow of $770-million, an increase of 23 per cent from 2023, and TTM cash generated from (used in) operating activities of $1,683-million, consistent with 2023;
• TTM available cash flow per share of $4.38, an increase of 16 per cent from 2023, and TTM cash generated from (used in) operating activities per share of $9.56, a decrease of 7 per cent from 2023;
• Leverage ratio of 3.1 times (2.8 times at fourth quarter 2023), reflecting the impact of the unplanned shutdown of the Burnaby refinery;
• Purchased for cancellation approximately 1.8 million common shares for $82-million under its normal course issuer bid program in Q1 2024;
• Parkland's quarterly dividend increased from 34 cents to 35 cents per common share, or $1.40 per common share annualized, representing a 3-per-cent increase from the prior year; dividends are expected to be declared and paid on a quarterly basis.

Q1 2024 conference call and webcast details

Parkland will host a webcast and conference call on Thursday, May 2, 2024, at 6:30 a.m. MT (8:30 a.m. ET), to discuss the results.

Analysts and investors interested in participating in the question-and-answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (conference ID: 10413873). International participants may call 1-800-389-0704 (toll-free) (conference ID: 10413873).

Please connect and log in approximately 10 minutes before the beginning of the call. The webcast will be available for replay two hours after the conference call ends. It will remain available for one year and will also be posted at the Parkland website.

Management's discussion and analysis and interim condensed consolidated financial statements

Management's discussion and analysis for the three months ended March 31, 2024, and interim condensed consolidated financial statements for the three months ended March 31, 2024, provide a detailed explanation of Parkland's operating results for the three months ended March 31, 2024. An English version of these documents will be available on-line at the Parkland website and SEDAR+ after the results are released by Newswire under Parkland's profile at SEDAR+. The French versions of the Q1 2024 MD&A and the Q1 2024 condensed consolidated financial statements will be posted to the Parkland website and SEDAR+ as soon as they become available.

About Parkland Corp.

Parkland is an international fuel distributor, marketer and convenience retailer with operations in 26 countries across the Americas. It serves over one million customers each day. Its retail network meets the fuel and convenience needs of everyday consumers. Its commercial operations provide businesses with industrial fuels so that they can better serve their customers. In addition to meeting its customers' needs for essential fuels, it provides a range of choices to help them lower their environmental impact. These include renewable fuel sourcing, manufacturing and blending, carbon and renewable trading, solar power, and ultrafast electric vehicle charging. With approximately 4,000 retail and commercial locations across Canada, the United States and the Caribbean region, it has developed supply, distribution and trading capabilities to accelerate growth and business performance.

Its strategy is focused on two pillars: its customer advantage and its supply advantage. Through its customer advantage, it aims to be the first choice of its customers, cultivating their loyalty through proprietary brands, differentiated offers, its extensive network, competitive pricing, reliable service and its compelling loyalty program. Its supply advantage is based on achieving the lowest cost to serve among independent fuel marketers and distributors in the hard-to-serve markets in which it operates, through its well-positioned assets, significant scale, and deep supply and logistics capabilities. Its business is underpinned by its people and its values of safety, integrity, community and respect, which are deeply embedded across the organization.

We seek Safe Harbor.