Topic: How To Invest

Q: Hello, Pat. What’s your opinion of Parkland Fuels? I have held it for some time now. Thanks.

Article Excerpt

A: Parkland Fuel Corp., $38.44, symbol PKI on Toronto (Shares outstanding: 133.0 million; Market cap: $5.0 billion, www.parkland.ca), operates gas stations, convenience stores and a fuel-distribution business, in Canada and the U.S. Its retail-fuel and convenience store banners include Ultramar, Esso, Fas Gas, Chevron, Pioneer, and On the Run. Its commercial-fuels business sells under the brands Bluewave Energy, Chevron, Columbia Fuels, Esso, Sparlings, Ultramar and others. Parkland has relied on acquisitions to expand its business. In March 2016, the company bought Esso stations in Saskatchewan and Manitoba. In early 2017, it agreed to purchase Chevron’s downstream operations in British Columbia for $1.5 billion. Primarily, they are an oil refinery in Burnaby, 129 gas stations in the Vancouver area and a business that supplies fuel to the Vancouver International Airport. This acquisition was completed in the fourth quarter of 2017. In August 2017, Parkland acquired the business assets of CST Brands, Inc. for $986.0 million from Alimentation Couche-Tard (symbol ATD.B on Toronto). Those assets mainly consist…