Core Insights - Parkland Corporation reported a record second quarter Adjusted EBITDA of $508 million, reflecting the strength and run rate potential of its diversified business [1][11] - The company is advancing the Sunoco Transaction, which is valued at approximately U.S.$9.1 billion, including assumed debt [5][6] - Parkland's Canadian and International businesses demonstrated resilience, with strong supply optimization and operations at the Burnaby refinery contributing to above mid-cycle refining margins [2][11] Financial Performance - For Q2 2025, total sales and operating revenue was $6,874 million, down from $7,504 million in Q2 2024 [10] - Adjusted EBITDA increased slightly from $504 million in Q2 2024 to $508 million in Q2 2025, driven by strong operations at the Burnaby Refinery and robust performance in Canada [11] - Net earnings rose significantly to $172 million ($0.99 per share) compared to $70 million ($0.40 per share) in Q2 2024 [11][12] Segment Highlights - Canada segment delivered Adjusted EBITDA of $190 million, up from $168 million in Q2 2024, attributed to stronger fuel unit margins and volume growth [11] - International segment's Adjusted EBITDA was $168 million, down from $180 million in Q2 2024, impacted by lower unit margins due to market instability [11] - USA segment's Adjusted EBITDA decreased to $26 million from $47 million in Q2 2024, primarily due to lower fuel unit margins and reduced retail volumes [11] Sunoco Transaction Update - Parkland shareholders approved the Sunoco Transaction with over 93 percent of votes in favor, and the transaction is expected to close in Q4 2025 [6][7] - The company has received necessary regulatory approvals, including from the Court of King's Bench of Alberta and Competition Act (Canada) clearance [6][7] 2025 Guidance - Parkland remains on track to meet its 2025 Adjusted EBITDA Guidance range of $1,800 to $2,100 million and Capital Expenditure Guidance range of $475 to $525 million [8]

Second Quarter 2025 Earnings Call July 31, 2025 www.world-kinect.com Copyright © 2025 World Kinect Corporation. All rights reserved. Disclaimer and Cautionary Note Regarding Forward-Looking Statements Certain statements, including comments about World Kinect Corporation's expectations regarding future plans, performance and acquisitions are forward-looking statements that are subject to a range of uncertainties and risks that could cause World Kinect's actual results to materially differ from the forward-lo ...

Company Overview - CrossAmerica Partners LP is a leading wholesale distributor of motor fuels and convenience store operator, formed in 2012 [5] - The company distributes branded and unbranded petroleum for motor vehicles across approximately 1,600 locations and owns or leases over 1,000 sites [5] - CrossAmerica Partners has a geographic footprint covering 34 states and maintains relationships with major oil brands including ExxonMobil, BP, Shell, Marathon, Valero, and Phillips 66 [5] - The company ranks as one of ExxonMobil's largest distributors by fuel volume in the United States and is in the top 10 for additional brands [5] Upcoming Earnings Announcement - CrossAmerica Partners will release its second quarter 2025 results after the market closes on August 6, 2025 [2] - A conference call will be hosted by management on August 7, 2025, at 9:00 a.m. Eastern Time [2] - The conference call can be accessed via phone at 800-990-4333 or 646-769-9600, with a passcode of 280060 [3] Investor Relations - A live audio webcast of the conference call and related earnings materials will be available on the investor section of the CrossAmerica website on the same day [3] - An archive of the webcast will be accessible within 24 hours after the call for a period of sixty days [4]

Company Overview - Global Partners operates approximately 1,700 fueling stations[14] - The company has 54 liquid energy terminals with approximately 21.9 million barrels of storage capacity[14] - The company owns or controls 786 retail sites, approximately 48% of the 1,561 supplied locations[42] Financial Performance (Q1 2025 vs Q1 2024) - Product margin increased to $288.6 million from $244.1 million[63] - Net income improved to $18.7 million from a loss of $5.6 million[63] - EBITDA increased to $91.9 million from $56.9 million[63] - Adjusted EBITDA increased to $91.1 million from $56.0 million[63] - Distributable Cash Flow (DCF) increased to $45.7 million from $15.8 million[63] - Adjusted DCF increased to $46.4 million from $16.0 million[63] Strategic Initiatives - The company is expanding into the Houston market through a joint venture, targeting a population of approximately 7 million residents[48, 50] - The company is focused on expanding EV charging access across retail locations[30]

Core Viewpoint - Fusion Fuel Green PLC has signed non-binding Heads of Terms to acquire 100% equity of a UK-based fuel distribution business, indicating a strategic move to enhance its energy solutions portfolio [1][3]. Financial Performance of Target - For the fiscal year ending April 30, 2024, Target generated revenues of approximately $50 million and net income of approximately $5 million [2]. - In the following fiscal year ending April 30, 2025, Target achieved revenues of approximately $58 million and net income of approximately $7 million, reflecting strong growth [2]. Acquisition Details - The total consideration for the acquisition is £50 million, comprising £40 million in debt-financed cash and £10 million in Fusion Fuel ordinary shares, subject to shareholder approval and securities registration [3]. - The Heads of Terms include equity value protection provisions, such as downside price protection for sellers, a buy-back option, and an upside cap provision [4]. Definitive Agreements - The definitive agreements are expected to include customary representations, warranties, and covenants, along with termination rights and potential termination fees [5]. - Entry into definitive agreements will depend on legal, tax, and accounting structuring advice, satisfactory completion of due diligence, and satisfaction of conditions outlined in the Heads of Terms [5]. Exclusivity and Confidentiality - The Heads of Terms contain binding exclusivity and confidentiality terms, preventing Target from soliciting or negotiating with other parties for 90 days from the signing [6]. Strategic Commentary - The CEO of Fusion Fuel highlighted that the acquisition of Target represents a significant step in the company's growth journey, complementing its existing Al Shola Gas brand and expanding service offerings [7].

Financial Performance - Net loss was $7.115 million, a 59% improvement compared to a net loss of $17.540 million in the same period last year[9] - Adjusted EBITDA increased by 3% to $24.269 million from $23.568 million[9] - Distributable Cash Flow (DCF) decreased by 22% to $9.095 million from $11.731 million[9] - Distribution coverage ratio decreased by 22% to 0.46x from 0.59x[9] Segment Results - Retail segment gross profit increased by 16% to $63.159 million from $54.386 million[7] - Retail segment operating income increased by 2% to $11.455 million from $11.255 million[7] - Wholesale segment gross profit decreased by 1% to $26.655 million from $26.962 million[7] - Wholesale segment operating income increased by 8% to $19.485 million from $18.065 million[7] Capital and Debt - First quarter capital expenditures were $10.1 million, including $7.4 million in growth capex[13] - Credit facility balance was $778.0 million as of March 31, 2025[13] - Leverage ratio was 4.27x as of March 31, 2025[13]

Core Insights - CrossAmerica Partners LP reported a net loss of $7.1 million for Q1 2025, an improvement from a net loss of $17.5 million in Q1 2024, indicating a challenging yet improving financial landscape for the company [4][5][6] - Adjusted EBITDA for Q1 2025 was $24.3 million, slightly up from $23.6 million in the same period last year, driven by increased gross profit in the retail segment [4][5][6] - The company continues to execute its asset rationalization strategy, enhancing its portfolio strength for future growth [3][4] Financial Performance - Net Income (Loss): Q1 2025 reported a loss of $7.1 million compared to a loss of $17.5 million in Q1 2024 [4][5] - Adjusted EBITDA: Increased to $24.3 million in Q1 2025 from $23.6 million in Q1 2024 [4][5] - Distributable Cash Flow: Decreased to $9.1 million in Q1 2025 from $11.7 million in Q1 2024 [4][5] - Distribution Coverage Ratio: Current quarter at 0.46x compared to 0.59x in Q1 2024; trailing twelve months at 1.04x compared to 1.37x [4][5] Retail Segment Highlights - Retail segment gross profit increased to $63.2 million in Q1 2025 from $54.4 million in Q1 2024, a 16% increase [7][8] - Motor fuel gallons distributed in the retail segment rose to 126.5 million from 121.7 million year-over-year [7][8] - Same-store merchandise sales excluding cigarettes decreased by 1% to $48.7 million in Q1 2025 [10] Wholesale Segment Highlights - Wholesale segment gross profit slightly decreased to $26.7 million in Q1 2025 from $27.0 million in Q1 2024 [12][13] - Motor fuel gallons distributed in the wholesale segment fell to 162.9 million from 184.0 million year-over-year [12][13] - Average wholesale gross profit per gallon increased to $0.097 from $0.079 [12][13] Asset Management and Divestment - CrossAmerica sold seven sites for $8.6 million in proceeds during Q1 2025, resulting in a net gain of $5.6 million [14] - The company is actively rationalizing its real estate assets to optimize its operational efficiency [14][6] Liquidity and Capital Resources - As of March 31, 2025, CrossAmerica had $778.0 million outstanding under its credit facility, with approximately $87.2 million available for future borrowings [15] - Leverage ratio was 4.27 times as of March 31, 2025, down from 4.36 times at the end of 2024 [15] Distribution Information - The Board declared a quarterly distribution of $0.5250 per limited partner unit for Q1 2025, to be paid on May 15, 2025 [16]

Core Viewpoint - Sunoco LP reported first-quarter 2025 earnings of $1.21 per unit, missing the Zacks Consensus Estimate of $1.69, but showing improvement from $1.06 per unit in the same quarter last year. Total revenues of $5.18 billion also fell short of the estimate of $5.32 billion and decreased from $5.50 billion year-over-year [1][2]. Financial Performance - The year-over-year increase in earnings was attributed to lower total expenses and higher fuel margins, although net income decreased [2]. - Total operating income for the quarter was $296 million, slightly down from $297 million in the prior-year quarter. Net income was reported at $207 million, compared to $230 million in the first quarter of 2024 [6]. - Adjusted distributable cash flow totaled $310 million, up from $176 million year-over-year [7]. Revenue and Expenses - Total cost of sales and operating expenses decreased to $4.88 billion from $5.20 billion a year ago [8]. - The partnership sold 2.1 billion gallons of fuel in the reported quarter, lower than the estimate of 2.3 billion gallons. Motor fuel gross profit per gallon increased to 11.5 cents from 10.9 cents year-over-year [5]. Distribution and Growth - The board declared a distribution of $0.8976 per unit for the first quarter of 2025, an increase from $0.8865 per unit in the previous quarter. The partnership targets a distribution growth rate of at least 5% for 2025 [3]. Segment Performance - Fuel Distribution segment reported adjusted EBITDA of $220 million, slightly up from $218 million in the comparable period of 2024, affected by lower fuel sales and lease profits [4]. - Pipeline Systems reported adjusted EBITDA of $172 million, benefiting from the acquisition of NuStar [4]. - Terminals segment saw adjusted EBITDA rise to $66 million from $24 million year-over-year, primarily due to acquisitions [5]. Balance Sheet and Outlook - As of March 31, 2025, Sunoco had cash and cash equivalents of $172 million and net long-term debt of $7.67 billion [9]. - The company reaffirmed its full-year 2025 Adjusted EBITDA guidance in the range of $1.90-$1.95 billion, with total operating expenses projected between $900 million and $925 million [10].

Financial Data and Key Metrics Changes - The partnership reported adjusted EBITDA of $458 million and distributable cash flow as adjusted of $310 million for Q1 2025, with a strong balance sheet and liquidity [6][9] - The leverage ratio at the end of the quarter was 4.1 times, aligning with the long-term target [7] - A distribution of $0.08 per common unit was declared, representing an increase of just over 1.25% compared to the previous quarter, with a trailing twelve-month coverage ratio of 1.9 times [8][9] Business Line Data and Key Metrics Changes - Fuel Distribution segment adjusted EBITDA was $220 million, with volumes at 2.1 billion gallons, down 3% from the previous quarter but flat year-over-year [12] - Pipeline Systems segment reported adjusted EBITDA of $172 million, with throughput at approximately 1.3 million barrels per day, down from 1.4 million barrels per day in the previous quarter [13] - Terminals segment delivered adjusted EBITDA of $66 million, with throughput increasing to 620,000 barrels per day from around 600,000 barrels per day in the previous quarter [14] Market Data and Key Metrics Changes - The company is expanding its geographic reach through acquisitions, including Parkland Corporation and Tankwit, which will enhance its presence in North America and Europe [4][8][15] - The acquisition of Tankwit, Germany's largest independent storage operator, is expected to close in the second half of 2025 and will be accretive to unitholders in the first year [7][8] Company Strategy and Development Direction - The company aims for an annual distribution growth rate of at least 5%, having increased distributions by approximately 9% since 2022 [9] - The strategy focuses on fuel profit optimization and integration with midstream assets, leveraging existing infrastructure for growth [15][18] - The company emphasizes strong operational execution, expense discipline, and profit optimization to deliver strong returns on capital [18][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year 2025 guidance despite potential challenges from inflation and recession [20][22] - The business model is designed to perform well in volatile environments, supported by pipeline and terminal assets that provide stable income [21][22] - The company is proactively managing expenses to remain below operating expense guidance, ensuring continued growth and value creation [23] Other Important Information - The company completed a $1 billion offering of senior notes to improve financial flexibility and extend debt maturity [6][7] - The acquisition of Parkland Corporation is valued at approximately $9.1 billion and is expected to close in the second half of 2025 [4][8] Q&A Session Summary Question: Future capital allocation among regions post Parkland close - Management indicated that capital allocation is evaluated across all segments and geographies, focusing on the best projects rather than specific regional targets [26][27] Question: Right mix between fuel distribution and conventional midstream assets - Management stated that while the portfolio may not always be perfectly balanced, the goal is to maintain a diversified portfolio, with a focus on long-term strength [28][29]

Financial Data and Key Metrics Changes - The partnership reported adjusted EBITDA of $458 million and distributable cash flow as adjusted of $310 million for the first quarter [5] - The leverage ratio at the end of the quarter was 4.1 times, aligning with the long-term target [6] - A distribution of $0.08 per common unit was declared, representing an increase of just over 1.25% compared to the previous quarter, with a trailing twelve-month coverage ratio of 1.9 times [7][8] Business Line Data and Key Metrics Changes - In the Fuel Distribution segment, adjusted EBITDA was $220 million, with volumes at 2.1 billion gallons, down 3% from the previous quarter but flat year-over-year [11] - The Pipeline Systems segment reported adjusted EBITDA of $172 million, with throughput of approximately 1.3 million barrels per day, down from 1.4 million barrels per day in the previous quarter [12] - The Terminals segment delivered adjusted EBITDA of $66 million, with throughput of 620,000 barrels per day, up from around 600,000 barrels per day in the previous quarter [13] Market Data and Key Metrics Changes - The company is acquiring Parkland Corporation for approximately $9.1 billion, expected to close in the second half of 2025 [3] - The acquisition of Tankwit, Germany's largest independent storage operator, for approximately €500 million is also in progress, expected to close in the second half of 2025 [6][7] Company Strategy and Development Direction - The company aims for an annual distribution growth rate of at least 5% and has increased distributions by approximately 9% since 2022 [8] - The strategy focuses on growing scale, optimizing fuel profit, and integrating with midstream assets, particularly through recent acquisitions [14][15] - The company emphasizes the importance of refined products in the global energy mix and plans to leverage existing infrastructure for future growth [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year 2025 guidance despite potential challenges from inflation and recession [20] - The business model is designed to perform well in volatile environments, supported by pipeline and terminal assets [22] - The company is proactively managing expenses and expects continued growth in EBITDA and distributions [23] Other Important Information - The company completed a $1 billion offering of senior notes to improve financial flexibility and extend debt maturity [6] - The partnership's strong liquidity positions it well for future growth and capital allocation priorities [6][8] Q&A Session Summary Question: Future capital allocation among regions post-Parkland close - Management indicated that capital allocation is evaluated across all segments and geographies, focusing on the best projects rather than specific regional targets [26][27] Question: Right mix between fuel distribution and midstream assets - Management stated that while the portfolio may not always be perfectly balanced, the goal is to maintain a diversified portfolio, with a focus on opportunities that provide strong financial benefits [28][29]