RE: Canaccord
Parkland Fuel* (PKI : TSX : $16.98), Net Change: 0.15, % Change: 0.89%, Volume: 283,613
Parklife. Parkland Fuel announced a small tuck-in acquisition of Sparling?s Propane, the second-largest propane distributor in Ontario. Sparling?s sells approximately 120 million litres of propane annually. A Bay Street analyst noted that he believes the transaction will be a nice fit with Parkland's recently acquired Elbow River Marketing acquisition, as the company should be able to leverage Elbow's propane distribution capability with the new Sparling's acquisition. "The acquisition of Sparling's Propane makes Parkland a major competitor in the Canadian propane market place," said Bob Espey, President and CEO of Parkland. “Together, we now have the platform for the aggressive development of propane opportunities across all of our markets." Additionally, the company noted that refiner margins returned to the higher end of their historic five year range during February and March, which will support earnings growth in Q1/13. Later in the day, PKI also announced they have entered into an agreement to become Morgan Stanley’s (MS) fuel marketer in the province of Quebec by assuming the customers and asset of TransMontaigne Canada. The new arrangement is set to close in early May. The company also announced that it will host and Investor Day on April 15 where it will update investors on its ongoing “Penny Plan”.