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Parkland acquires ConoMart Super Stores in the U.S.

Parkland Fuel Corporation, through its wholly owned U.S. subsidiaries, has entered into an asset agreement to acquire seven retail sites located in and around Billings, Montana. All seven retail sites feature a strong convenience store offering and a Conoco-branded forecourt.

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“This acquisition expands our Montana business and scales our existing Northern Tier Regional Operating Centre,” Doug Haugh, president of Parkland USA, said in a release. “ConoMart Super Stores is a well-run, customer-focused business and we look forward to welcoming the team to Parkland.”

Calgary-based Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator across Canada, the United States, the Caribbean region and the Americas.


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Parkland expands foodservice offering with Triple O’s restaurant deal

UnknownParkland Fuel Corporation is entering into a multi-year agreement to strengthen its range of freshly prepared and quality meal options by expanding its long-standing relationship with Triple O’s restaurants.

This exclusive agreement builds on the success of Parkland’s existing network of On The Run and Town Pantry convenience stores that already feature Triple O’s in British Columbia – Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator. This paves the way for more restaurants in British Columbia, as well as Triple O’s entry into Alberta and Ontario.
Screen Shot 2020-02-25 at 10.04.23 AMTriple O’s Restaurants is a division of White Spot Hospitality – a Canadian restaurant chain since 1928 – that operates more than 60 quick service restaurants throughout British Columbia, Alberta and Asia. The quick service burger restaurant currently operates at select Parkland Town Pantrys in British Columbia.
“We look forward to working with Triple O’s to expand their presence in B.C. and launch their high-quality food brand and award-winning menu into Alberta and Ontario,” Ian White, Parkland’s senior vice-president of strategic marketing and innovation, said in a release. “As part of our organic growth strategy, our goal is to include a high-quality food offering in every new and retrofitted On the Run convenience store.”
The combination of Parkland’s network of fuel brands with Triple O’s freshly prepared breakfast, lunch, dinner and snack options complement Parkland’s existing food offering and is a natural extension to its On the Run convenience store brand.
“This is an exciting day for the Triple O’s family,” said Warren Erhart, president of White Spot Hospitality. “We have a longstanding and successful partnership with Parkland in British Columbia and look forward to expanding on this success in new markets. With consumers’ evolving needs for convenience and premium quality food, it is with great pride and passion that we are now able to share our delicious and craveable taste of Triple O’s with our signature burgers, fresh-cut Kennebec fries and hand-scooped milkshakes, to so many more Canadians.”

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Parkland acquires U.S.-based Kellerstrass Oil

Parkland Fuel Corporation, through its wholly owned U.S. subsidiaries, it has entered into an agreement to acquire the entities and assets of Kellerstrass Oil Company.

UnknownBased in Salt Lake City, Kellerstrass is a regional retail dealer and commercial fuel business with branches in Utah, Idaho and Wyoming.

Calgary-based Parkland is an independent supplier and marketer of fuel and petroleum products and a convenience store operator servicing customers across Canada, the United States, the Caribbean region and the Americas through its retail, commercial and wholesale divisions.

In a release Parkland stated: “In addition to highly efficient trucking, routing and distribution practices, Kellerstrass brings a strategic 17-car rail spur and storage assets, commercial card locks and an 84-location dealer business. Kellerstrass will complement and strengthen Parkland’s existing Rockies Regional Operating Centre.”

The acquisition is part of Parkland’s efforts to expand its U.S. footprint, says Doug Haugh, president of Parkland USA. “We expect this acquisition will support the growth of our North America diesel platform, create supply efficiencies and deliver logistical benefits. We are delighted to enter the Idaho market and expand our presence in Wyoming and look forward to welcoming the Kellerstrass team to Parkland.”

The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2020.


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Parkland completes Mort Distributing acquisition

Parkland Fuel Corporation, through its wholly owned U.S. subsidiaries, has completed the previously announced acquisition of the assets of Mort Distributing, Inc.

Mort is a marketer and distributor of fuels and lubricants serving retail, commercial and wholesale customers across Montana. Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator.


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Parkland acquires U.S.-based Mort Distributing

Parkland Fuel Corporation, through its wholly owned U.S. subsidiaries, is entering into an agreement to acquire the assets of Montana-based Mort Distributing, Inc. and its affiliates.

Founded in 1958, Mort is a family-owned marketer and distributor of fuels and lubricants serving retail, commercial and wholesale customers. Mort’s operations are focused in Montana, which will enable Parkland to “further capture distribution efficiencies and enhance customer service across its Northern Tier Regional Operating Centre (ROC).”

“This acquisition is consistent with our U.S. growth strategy and will complement and strengthen our existing Northern Tier ROC,” Doug Haugh, president of Parkland USA said in a statement. “We look forward to welcoming the Mort team into Parkland and to continuing to deliver high-quality products and excellent service to Mort’s broad customer base.”

The acquisition will primarily be funded from cash from operations. The transaction is expected to close by the end of 2019 and is subject to customary closing conditions.


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Parkland announces interim CFO

Screen Shot 2019-11-13 at 9.53.33 AMDarren Smart is taking on the role of interim chief financial officer, in addition to his current role as Parkland’s senior vice-president, strategy and corporate development.

Mike McMillan, who has served as the company’s CFO since 2015 is leaving the company, but will support Smart’s transition until December 31, 2019.

“We are pleased that Darren has assumed the Interim CFO role in addition to his existing accountabilities,” Bob Espey, Parkland’s president and CEO, said in a release. “During the past five-years, Darren has played a significant commercial and financial leadership role in the company. I am confident he will do an excellent job and provide strong continuity as we search for a permanent chief financial officer.”

Smart joined Parkland in 2014 and leads the company’s enterprise wide strategy and corporate development activity.  He has been a member of the company’s senior leadership team since 2015. Prior to joining Parkland, he was a portfolio manager at Teachers’ Private Capital, the private equity arm of the Ontario Teachers’ Pension Plan, where he was responsible for sourcing, evaluating and managing energy-related investments. Smart has a Master of Business Administration from Harvard Business School and a Bachelor of Business Administration with distinction from Wilfrid Laurier University.

Screen Shot 2019-11-13 at 9.54.21 AMIn May, Parkland announced that McMillan has decided to move back to Ontario to spend more time with his family. The company immediately begin a search to replace McMillan, who agreed to support us until a successor has been named and an appropriate transition period is completed.

“Mike has made exceptional contributions during his ten-years with Parkland,” adds Espey. “On behalf of the Parkland team, I thank him for his commitment to our growth and success and offer my best wishes.”


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Parkland Fuel plans refinery maintenance

The refinery that is the sole local supplier of motor fuel in the B.C. Lower Mainland is being scheduled for an eight-week maintenance shutdown early next year but owner Parkland Fuel Corp. says it is taking measures to keep prices at the pump in check.

The 55,000-barrel-per-day Burnaby refinery is putting fuel in storage to be drawn upon during the outage but that won’t be enough to last for the entire duration, said Dirk Lever, vice-president for refining, on a conference call to discuss Parkland’s third-quarter results last week.

“We have a fair amount of planning to do dealing with other refineries in order to source supply as we’re down,” he said.

“More material to pump prices on the West Coast are unplanned outages, rather than planned outages. So the fact this is a planned outage and has been orchestrated ahead of time, it should not have a material impact at the pump.”

Gasoline and diesel prices have been a hot topic in British Columbia.

A public inquiry concluded in August that there’s an unexplained difference of 13 cents per litre between Metro Vancouver and Seattle that is costing drivers on the Canadian side of the border nearly $500 million a year.

But it also found no evidence of collusion among the companies – including Parkland – that supply and market fuel.

Premier John Horgan called the public inquiry last May as gasoline prices reached a record-breaking $1.70 per litre in the Vancouver region.

Parkland’s down time shouldn’t result in higher prices because there has been sufficient preparation time, said market watcher Michael Ervin, senior vice-president with consulting firm Kent Group, on Tuesday.

He said prices are generally higher in the Vancouver area because of supply and demand.

B.C.’s other fuel refinery, the 12,000-bpd facility in Prince George, was recently sold by Husky Energy Inc. to Tidewater Midstream and Infrastructure Ltd.

Shares in Calgary-based Parkland, Canada’s largest independent fuel marketer, jumped by nearly five per cent early Tuesday after it increased its 2019 guidance on the back of third-quarter adjusted earnings that beat analyst expectations.

“Our business is performing well and the increase reflects our strong third quarter and confidence for Q4,” said CEO Bob Espey on the conference call.

The company, which sells gasoline and diesel under brands including Fas Gas, Chevron, Esso, Ultramar and Pioneer, and operates On The Run convenience stores in Canada, said it now expects its adjusted earnings in 2019 before interest, taxation, depreciation and amortization will be $1.24 billion, up $75 million from the previous forecast.

During the quarter, Parkland began the rollout of its national Journie Rewards customer loyalty program in partnership with CIBC in Canada and bought Florida-based fuel marketer Tropic Oil.

The company reported third-quarter net earnings of $26 million, down from $49 million in the year-earlier period, with the slip mainly attributed to an increase in interest on long-term debt relating to its purchase early this year of Caribbean fuel retailer Sol.

It reported adjusted EBITDA of $302 million in the three months ended Sept. 30, up from $200 million in the same period of 2018, as revenue jumped to $4.6 billion from $3.8 billion.


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Parkland Fuel shares up on adjusted earnings beat, increased guidance for 2019

Shares in Parkland Fuel Corp., Canada’s largest independent fuel marketer, rose Nov. 5 after it increased its 2019 guidance on the back of third-quarter adjusted earnings that beat analyst expectations.

The Calgary-based company says it now expects its adjusted earnings in 2019 before interest, taxation, depreciation and amortization will be $1.24 billion, up $75 million from the previous forecast.

The company, which sells gasoline and diesel under brands including Fas Gas, Chevron, Esso, Ultramar and Pioneer, and operates On The Run convenience stores in Canada, reported third-quarter net earnings of $26 million, down from $49 million in the year-earlier period, mainly due to an increase in interest on long-term debt relating to its purchase early this year of Caribbean fuel retailer Sol.

It reported adjusted EBITDA of $302 million in the three months ended Sept. 30, up from $200 million in the same period of 2018, as revenue jumped to $4.6 billion from $3.8 billion.

Analysts had expected $55.9 million in net income and $154.6 million in adjusted EBITDA on revenue of $4.64 billion, according to financial markets data firm Refinitiv.

During the quarter, Parkland began the rollout of its Journie Rewards customer loyalty program in partnership with CIBC in Canada and bought Florida-based fuel marketer Tropic Oil.


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Parkland partners with CIBC for new rewards program

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Parkland Fuel Corporation is launching Journie, a nationwide rewards and customer loyalty program with CIBC as its strategic banking partner.

Journie is designed to offer Canadians compelling fuel savings and merchandise offers and will launch in select Ontario, British Columbia and Quebec markets this fall with a full national rollout in early 2020.

Journie members that link their personal CIBC credit and debit cards will enjoy fuel savings of three cents per litre at participating locations when paying with their CIBC card. Following its full national rollout, Journie Rewards and the CIBC fuel savings will be available across Parkland’s coast-to-coast network of approximately 1,300 Chevron, Ultramar, Pioneer and Fas Gas sites. In addition to instant fuel savings, customers can simultaneously collect Journie Rewards as well as rewards they already earn with their CIBC credit card.

“The launch of our Journie Rewards program and CIBC’s participation is a major milestone for Parkland,” Ian White, SVP of strategic marketing and innovation, said in a release. “By connecting our national network of fuel retail sites and On the Run and Marché Express convenience stores under a single proprietary rewards program with compelling fuel and merchandise offers, we are creating a powerful customer loyalty offer with nationwide scale.”

“This is an exciting loyalty program bringing together two innovative and customer focused companies that have an extensive nationwide retail presence and broad consumer reach,” added White. “In addition to enhancing our Journie value proposition, our partnership with CIBC supports our strategy to grow our fuel sales volumes and increase foot traffic in our Canadian convenience stores.”

“This partnership builds on our exceptional credit card benefits, such as our four per cent cashback on fuel purchases with our CIBC Dividend Visa Infinite* Card,” said Jeff Smith, VP, client loyalty solutions and partnerships, personal banking products, CIBC.  “We’re making it radically simple for our clients to receive discounts at the pump, while helping them achieve their reward ambitions sooner.”

Parkland’s Journie Rewards program is supported by a newly developed mobile app available for anyone to download on iOS and Android platforms from October 23, 2019.


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Parkland Acquires Tropic Oil Company

Through its U.S.-based subsidiaries, Parkland Fuel Corporation in Calgary has entered into an agreement to acquire all of the issued and outstanding equity interests of Tropic Oil Company, Inc., as well as equity interests and the assets of certain of its affiliates.

Tropic Oil is headquartered in Miami, Florida, and transports, distributes and markets a full range of fuels and lubricants across the central and south Florida region. It supplies and operates nine cardlock facilities and four bulk storage plants and warehouses.

“The Tropic Oil acquisition continues on our U.S. growth strategy by adding quality regional operators in regions where we can bring a distinct supply advantage,” Bob Espey, president and CEO of Parkland, said in a release. “This initial toehold in Florida also complements our Caribbean business by providing significant supply and distribution synergy potential. We welcome Steve Gorey from Tropic Oil’s leadership team and the rest of their employees into Parkland.”

“Through Tropic Oil, Parkland is adding its third Regional Operating Center (ROC) and expanding its presence into the southeastern states for the first time,” said Doug Haugh, president of Parkland USA. “This new Southeast ROC will be the operating platform that drives organic growth and enables further acquisitions across the region, while leveraging our business with Sol.”

The transaction is expected to close on Oct. 1, 2019.