Parkland Fuel Corporation Reports Q3 Adjusted EBITDA of $60.4 Million

Parkland Fuel Corporation (“Parkland”) (TSX:PKI), Canada's largest and
one of North America's fastest growing independent marketers of fuel and
petroleum products, announced today the financial and operating results
for the three and nine months ended September 30, 2016. All financial
figures are expressed in Canadian dollars.

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“Parkland delivered its quarterly plan by achieving $60.4 million in
Adjusted EBITDA this quarter, compared to $59.1M in Q3 2015,” said Bob
Espey, President and Chief Executive Officer of Parkland. “Our results
were primarily driven by our Supply and Wholesale and Retail Fuels
segments, both demonstrating growth this quarter, which helped to offset
the continued softness in economic activity in Western Canada and the
Bakken region in the U.S. Volumes were down slightly due to softer
wholesale volume, especially in our U.S. division. With the value that
geographic, customer and product diversity contributes to our business
and our team’s exceptional efforts, we remain confident in our ability
to deliver our 2016 guidance of $235 to $265 million in Adjusted EBITDA.”

KEY COMPONENTS OF PARKLAND’S STRATEGY – Q3 2016 HIGHLIGHTS

GROW

• Parkland’s Retail Fuels division opened its first Québec site in La
  Prairie, QC and its first integrated Fas Gas and On the Run/Marché
  Express retail site in Hinton, AB.
• The Retail Fuels team continues to drive strong organic growth in
  convenience stores with Q3 same-store sales growth of 3% nationally
  and 10.4% in the East while overlapping Parkland’s ownership of
  Pioneer. This continues to demonstrate Parkland’s ability to drive
  exceptional execution of our marketing and merchandising programs.
• Retail Net Unit Operating Cost ("NUOC") has seen a continuous
  improvement in the last twelve months post-acquisition of Pioneer
  Energy as a result of successful cost control initiatives.
• Parkland’s Commercial Fuels team remains focused on gaining market
  share and managing costs. Commercial Fuels signed 20 million litres of
  new onsite refueling business in Western Canada and has renewed its
  agreement with the Canadian Forces Exchange System (CANEX), which
  represents over 6,500 residential home heating accounts across Canada.
• The Commercial Fuels team continues to deliver on the expected volume
  of over 100 million litres of annual propane volume that was awarded
  to Parkland in Q1 2016. Commercial Fuels invested in two sites in the
  West for a cost of $1.0 million on a year to date basis and has
  installed over 3,000 new propane tanks in order to deliver on this
  increase in propane volume. The revenue associated with this propane
  supply will be realized by Parkland in the upcoming quarters.
• Marketing, general and administrative expenses increased by $1.7
  million in the third quarter due to a non-cash Deferred Share Units
  (DSU) revaluation expense on outstanding DSUs to reflect growth in
  Parkland’s share price.

SUPPLY

• In the third quarter of 2016, Parkland welcomed David Wade as the new
  Senior Vice President of Supply and Wholesale. David is an established
  business executive with international experience in sales, marketing,
  trading, as well as supply and logistics.
• The Supply and Wholesale team continues to drive and support further
  growth, maintaining a commitment to ongoing improvements to our cost
  of supply as demonstrated by their 32% improvement in segment Adjusted
  EBITDA despite slightly lower volume compared to Q3 2015. As noted in
  the August 4, 2016 press release, improved overall economics are
  expected to position Parkland well in the future. Elbow River
  Marketing strategically executed on arbitrage opportunities,
  particularly in its Liquid Petroleum Gas and Crude, Asphalt and Fuel
  Oil portfolios.

ACQUIRE

• On August 22, 2016, Parkland announced an agreement to acquire the
  majority of the Canadian business and assets of CST Brands, Inc. This
  highly accretive acquisition extends Parkland’s network coverage with
  a premier fuel network in Québec and Atlantic Canada and enhances
  Parkland’s presence in Ontario. We expect pre-synergy accretion of
  over 20% to Distributable Free Cash Flow per Share on a
  trailing-twelve-months basis as at June 30, 2016. The Acquisition
  allows Parkland to add the Ultramar brand to its portfolio, which is
  one of the most recognized retail fuel brands in Québec and Atlantic
  Canada.
• On September 2, 2016, Parkland closed the previously announced
  acquisition of the business and assets of Stony Propane Ltd. Pursuant
  to this acquisition, Parkland is now servicing new residential and
  commercial customers under the Bluewave Energy banner in Edmonton and
  surrounding area.
• Subsequent to the quarter:
  • On October 5, 2016, Parkland closed the previously announced
    acquisition of On the Run/Marché Express from Imperial Oil.
  • On October 12, 2016, Parkland signed an agreement to acquire the
    business and assets of The Propane Guys for $4.5 million
    representing approximately 5.9 times the annualized Adjusted
    EBITDA of the business. The Propane Guys specializes in
    residential, commercial and industrial propane supply and
    equipment rentals to customers in the Saskatoon, Saskatchewan
    area. This addition will allow Parkland to continue to grow its
    propane offering in Saskatchewan and complements its existing
    commercial operations by leveraging The Propane Guys’ strong
    service and tank rental offering.
  • On October 27, 2016, Parkland announced it signed an agreement to
    purchase the assets and operations of PNE Corporation, a national
    provider of propane cylinder exchange services for $17 million.
    The acquisition will add approximately 17 million litres of
    propane on an annual basis and will expand the scope of Parkland’s
    propane business to include a national 20-pound cylinder exchange
    offering in addition to a 33- and 100-pound cylinder offering in
    Ontario.
  • On October 27, 2016, Parkland announced it signed an agreement to
    acquire three sites from 7-Eleven Inc. These sites include two
    truck stops and one retail station in and around Cheyenne, Wyoming
    in the southeast part of the state. Collectively, these stations
    are expected to sell more than 15 million gallons (55 million
    litres) of volume on an annual basis.

MD&A AND FINANCIAL STATEMENTS

The Q3 2016 Management’s Discussion and Analysis and the Interim
Condensed Consolidated Financial Statements provide a detailed
explanation of Parkland’s operating results for the three and nine
months ended September 30, 2016. These documents are available online at www.parkland.ca
and SEDAR immediately after the results are released by newswire under
Parkland’s profile at www.sedar.com.

CONFERENCE CALL AND WEBCAST INFORMATION

Parkland will host a webcast and conference call at 6:00 a.m. MST (8:00
a.m. EST) on Friday, November 4, 2016, to discuss the results for the
three and nine months ended September 30, 2016.

To access the conference call by telephone, dial toll-free
1-844-889-7784 [Conference ID: 98746396]. The webcast slide presentation
can be accessed at http://edge.media-server.com/m/p/ff4dpbt7.
Please connect and log in approximately 10 minutes before the beginning
of the call.

The webcast will be available for replay two hours after the conference
call ends at the link above. It will remain available at the link above
for one year and will also be posted to www.parkland.ca.

A link to the live webcast will be available on the Investors section of
Parkland’s website: http://www.parkland.ca/investors/.

If you are unable to participate in the call, an instant replay will be
available by dialing 1-855-859-2056, Conference ID: 98746396 (Canada,
USA and International toll-free). This instant replay will be available
until November 7, 2016, after which the presentation can be viewed at
the webcast link above.

FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES

Certain statements contained in this news release constitute
forward-looking information and statements (collectively,
“forward-looking statements”). When used in this news release, the words
“expect’’, ‘‘will’’, ‘‘could’’, ‘‘would’’, “well positioned,” ‘‘pursue’’
and similar expressions are intended to identify forward-looking
statements. In particular, this news release contains forward-looking
statements with respect to, among other things, business objectives and
growth strategies, the strength of Parkland’s balance sheet and
financial condition, sources of growth, future acquisitions, capital
expenditures, the anticipated benefits and accretive effects of closed,
announced and/or future acquisitions, contribution of Distributable Cash
Flow per Share from acquisitions, and plans and objectives of or
involving Parkland.

These forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or events
to differ materially from those anticipated in such forward-looking
statements. No assurance can be given that these expectations will prove
to be correct and such forward-looking statements included in this news
release should not be unduly relied upon. These forward-looking
statements speak only as of the date of this news release. Parkland does
not undertake any obligations to publicly update or revise any
forward-looking statements except as required by securities law. Actual
results could differ materially from those anticipated in these
forward-looking statements as a result of numerous risks and
uncertainties including, but not limited to, failure to achieve the
anticipated benefits of acquisitions, failure to obtain necessary
regulatory or other third-party consents and approvals required to
complete announced acquisitions, failure to complete announced
acquisition, general economic, market and business conditions, industry
capacity, competitive action by other companies, refining and marketing
margins, the ability of suppliers to meet commitments, actions by
governmental authorities and other regulators including increases in
taxes, changes and developments in environmental and other regulations,
and other factors, many of which are beyond the control of Parkland. See
also the risks and uncertainties described in “Forward-Looking
Statements” and “Risk Factors” included in Parkland’s Annual Information
Form dated March 30, 2016, as filed on SEDAR and available on Parkland’s
website at www.parkland.ca.

This news release refers to certain Non-GAAP financial measures that are
not determined in accordance with International Financial Reporting
Standards (“IFRS”). Distributable Cash Flow, Distributable Cash Flow per
Share, Dividend Payout Ratio, Adjusted Dividend Payout Ratio, Fuel and
Petroleum Product Adjusted Gross Profit, and Adjusted Marketing, General
and Administrative expenses are not measures recognized under IFRS and
do not have standardized meanings prescribed by IFRS. Management
considers these to be important supplemental measures of Parkland’s
performance and believes these measures are frequently used by
securities analysts, investors and other interested parties in the
evaluation of companies in its industries. See ‘‘Distributable Cash
Flow” in Parkland’s September 30, 2016 MD&A for a reconciliation of
distributable cash flow to cash flow from operating activities, the IFRS
measure most directly comparable to distributable cash flow. See the
“Non-GAAP financial measures, reconciliations and advisories” section of
the September 30, 2016 MD&A. Adjusted EBITDA and Adjusted Gross Profit
are measures of segmented profit See “Note 17 – Segment Information” of
the Parkland’s Q3 Interim Condensed Consolidated Financial Statements.
Investors are encouraged to evaluate each adjustment and the reasons
Parkland considers it appropriate for supplemental analysis. Investors
are cautioned, however, that these measures should not be construed as
an alternative to net earnings determined in accordance with IFRS as an
indication of Parkland’s performance. The forward-looking statements
contained in this news release are expressly qualified by this
cautionary statement.

ABOUT PARKLAND FUEL CORPORATION

Parkland Fuel Corporation delivers gasoline, diesel, propane,
lubricants, heating oil and other high-quality petroleum products to
motorists, businesses, households and wholesale customers in Canada and
the United States. Our mission is to be the partner of choice for our
customers and suppliers, and we do this by building lasting
relationships through outstanding service, reliability, safety and
professionalism.

We are unique in our ability to provide customers with dependable access
to fuel and petroleum products, utilizing a portfolio of supply
relationships, storage infrastructure, and third-party rail and highway
carriers to rapidly respond to supply disruptions in order to protect
our customers.

To sign up for Parkland news alerts, please go to http://bit.ly/PKI-Alert
or visit www.parkland.ca.

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