Parkland (PKI) Investor Presentation summary

Business overview and financial highlights

• Operates as a leading distributor of fuel and convenience products with an enterprise value of $14.2 billion and market capitalization of $8.2 billion as of early 2024.

• Achieved a 3.0% dividend yield and approximately 50% total shareholder return in 2023.

• Maintains a diversified business model across Canada, the USA, and international markets, with about 28 billion litres of product sold in 2023 and around 4,000 locations.

• 2023 adjusted EBITDA reached approximately $1.9 billion, with net earnings of $471 million and available cash flow of $812 million.

• Corporate credit rating is BB Stable, and the company employs about 6,000 people.

Business model and growth platform

• Competitive advantages include loyal customers, strong logistics assets, and scale, enabling a low cost to serve.

• EBITDA contributions in 2023: Canada 35%, International 34%, USA 9%, Refining 22%.

• Product mix: gasoline 48%, diesel 34%, other fuels 18%.

• Strategic focus on organic growth, synergy capture, and expanding renewable and EV businesses.

• 2024 guidance targets $2 billion adjusted EBITDA, $5 available cash flow per share, and $475–$525 million in capital expenditures.

Capital allocation and financial strategy

• Plans to generate $6 billion in cumulative available cash flow from 2024–2028, allocating 25% each to dividends/buybacks and organic growth, and 50% to deleveraging.

• Track record of increasing dividends per share at a 3% CAGR since 2012, reaching $1.40 per share in 2024.

• No corporate bond maturities until 2026; leverage ratio reduced to 2.8x in 2023 with a target of low 2–3x by 2025.

• Additional capital to be allocated to buybacks or inorganic growth after deleveraging.