Parkland Fuel (TSX:PKI) is a fast-growing independent fuel and petroleum marketer and leading convenience store operator with operations across the Americas. The company serves customers through retail, commercial and wholesale divisions. It optimizes fuel supply by leveraging a growing portfolio of supply relationships and storage and logistics infrastructure.
Well positioned for a green future
Parkland provides fuel brands and convenience store offerings in the communities it serves. Through the company’s Burnaby refinery, and as part of a commitment to a lower carbon future, Parkland is focused on delivering essential fuels to customers with lower carbon intensity. Parkland owns the first facility in Canada to use existing infrastructure and equipment to co-process bio-feedstocks along with crude oil to produce low carbon fuels.
The company continues to expand in Canada and the United States (U.S.) and aims to create a unified North American convenience store brand. Driven by a customer focus, Parkland is growing organically through the company’s deep pipeline of organic opportunities. This helps it to realize a strong supply advantage and integrate successfully through several acquisition and integration capabilities.
In addition to offering customers compelling fuel and merchandise offers, Parkland is also focused on expanding margins across the company’s fuel and non-fuel categories. The company’s diversified and resilient platform provides stability and multiple avenues for growth including but not limited to opportunities in low-carbon fuels. Parkland has a proven track record of returns, a multichannel marketing capability with difficult to replicate assets and a resilient business model.
Further, Parkland has significant financial flexibility and allocates capital prudently. Parkland has a diverse geographic and product platform across 25 countries. The company drives organic growth by leveraging a portfolio of products and services, industry-leading brands, expansive network and operational excellence to create meaningful and differentiated customer value and loyalty propositions.
Significant growth opportunities
The company has invested capital into growth opportunities that strengthen Parkland’s entire business, optimizes the company’s supply chain to lower product costs, and leverages technology, proprietary data and brands to continuously enhance the company’s customer value and loyalty propositions.
Parkland has also built a strong supply advantage across the company’s entire business that is underpinned by proprietary assets, supply flexibility, logistics and trading capabilities. The company strives to capture economics across the value chain and enhances margins by leveraging scale and product diversity. It sources the most economic products by leveraging transportation and storage capacity.
Skilled capital allocator
The company safely supplies Parkland’s own retail, commercial and wholesale sales network and drives incremental value through third-party sales. The company has a proven track record of identifying, acquiring and integrating leading regional operators that complement, strengthen and expand Parkland’s business.
Parkland is also skilled at effectively integrating acquired companies, including driving operational efficiencies, capturing synergies and creating value. The combination of the company’s supply advantage, integration capabilities and experience across all fuel marketing channels positions Parkland to be a regional consolidator of the fragmented fuel distribution market.
Parkland’s disciplined acquisition approach has allowed it to excel at acquiring complex target portfolios in inefficient markets.
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Fool contributor Nikhil Kumar has no position in any of the stocks mentioned.