Parkland provides business update related to COVID-19

CALGARY, Alberta, March 30, 2020 (GLOBE NEWSWIRE) -- Parkland Fuel Corporation ("Parkland", "we", the "Company", or "our") (TSX:PKI) announced today in response to the uncertain economic impact of novel coronavirus (“COVID-19”): a reduction in its 2020 Capital Expenditure program, the withdrawal of its 2020 Adjusted EBITDA guidance, reiteration of the Company’s financial strength and other corporate updates.

“We are responding quickly and prudently to the ongoing COVID-19 pandemic,” commented Bob Espey, President and Chief Executive Officer. “During this unprecedented period of uncertainty, our priority is to protect the health and safety of our employees as they continue to provide an essential service to the communities we serve. We are proud to remain operational through this period and I would like to thank our team for their ongoing commitment to safely meeting our customer’s energy and convenience needs.”

“The agility of our business model is evident by being able to quickly taper our 2020 capital expenditure program and reduce costs to reflect the current business environment. We will maintain the operational flexibility to resume our growth initiatives when conditions improve. Underpinned by our integrated and resilient business model, diverse geographic platform, and extensive product offering, we have a strong track record of growth and expect that to continue once conditions improve.”

2020 Capital Expenditure Program revision

On March 5, 2020, Parkland issued guidance for 2020 Total Capital expenditures of $575 million +/- 5%. Consistent with our priority to maintain financial flexibility and balance sheet strength, we are reducing our 2020 Capital Program by $300 million to $275 million +/- 5%. The capital expenditures included in the reduction can be deferred until an improvement in the current economic environment. Details of our updated 2020 plans are below:

Capital Expenditures ($ millions)
Growth	85
2020 Refinery Turnaround Maintenance	60
Other Maintenance	130
Total Capital Expenditures (1)	275	+/- 5%

⁽¹⁾ the "2020 Capital Program"