Parkland Corp T.PKI

Alternate Symbol(s): PKIUF

Energy Oil & Gas Refining & Marketing

Parkland Corporation is an international fuel distributor, marketer and convenience retailer with operations in 26 countries across the Americas. The Company’s segments include Canada, International, USA and Refining. Its retail network meets the fuel and convenience needs of everyday consumers. It also provides a range of choices to help them lower their environmental impact. These include renewable fuel sourcing, manufacturing and blending, carbon and renewables trading, solar power, and ultra-fast 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. Its commercial business provides commercial, industrial and residential customers with the essential fuels, propane, lubricants and services they need. Its Burnaby Refinery plays a critical role in supplying its customers in British Columbia with conventional and low-carbon fuels.

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Parkland Corp

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Post by retiredcfon Jan 03, 2024 9:03am

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Post# 35808390

RBC

January 3, 2024

Parkland Corp
Recent Board changes may result in near-term overhang

TSX: PKI | CAD 41.32 | Outperform | Price Target CAD 54.00

Sentiment: Neutral

Parkland recently announced the departure of Simpson Oil Board nominees Michael Christiansen and Marc Halley from Board of Directors. While specific detail on rationale was not provided, we believe the change combined with strong stock performance through 2023, may increase the likelihood of the Simpson family selling down some shares over time and could result in a near-tem overhang on the stock. That said, we believe it remains in the Simpson family's best interest to manage potential sales strategically, though we have limited insight into their current thinking. Importantly, we do not expect any change to the company's strategy or capital allocation framework as outlined at the recent investor day (note here).

Details:

Simpson Oil Board members step down. Parkland announced the departure of Simpson Oil Board nominees Michael Christiansen and Marc Halley from Board of Directors effective immediately. Simpson has provided notice of its waiver of its nomination rights under the collective Board Nomination Agreement, which will terminate as of April 2, 2024. The company is working to fill the Board vacancies, utilizing a global recruitment firm to aid the process.