Parkland Fuel Corporation Reports Record Q4 and 2016 Results and Announces 2017 Guidance

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 twelve months ended December 31, 2016. All financial
figures are expressed in Canadian dollars.

“Parkland delivers record Adjusted EBITDA of $77.1 million in Q4 and
$253.5 million in 2016 and demonstrates the ability to consistently
produce strong results for our shareholders through our strategic plan
to grow organically, deliver a supply advantage and acquire prudently.
In 2016, we continued to invest in acquisitions of businesses, which
helped us build scale and synergies, while continuing to drive organic
growth through our relentless focus on customer service,” said Bob
Espey, President and Chief Executive Officer at Parkland. Parkland has
also announced 2017 Adjusted EBITDA guidance of $255 million to $285
million (“2017 Guidance Range”), see Additional Guidance Considerations
section below.

In August 2016, Parkland announced that it had entered into an agreement
with Alimentation Couche-Tard Inc. to acquire the majority of the
Canadian business and assets of CST Brands, Inc. (the “CST
Acquisition”). Parkland anticipates the CST Acquisition will now close
in Q2 2017 due to a second information request in connection with the US
Federal Trade Commission on-going review of Alimentation Couche-Tard
Inc.’s acquisition of CST Brands, Inc.

Parkland has also announced its annualized common share dividend will
increase two cents per share, from $1.134 to $1.154, effective with the
monthly dividend payable on April 13, 2017 to shareholders of record at
the close of business on March 22, 2017.

KEY COMPONENTS OF PARKLAND’S STRATEGY – Q4 and 2016 HIGHLIGHTS

GROW

• Parkland delivered 19% growth in Q4 Adjusted EBITDA compared to Q4
  2015, driven by growth in all of Parkland's operating segments,
  including 21% growth in Supply and Wholesale, 15% growth in Retail
  Fuels, and 5% growth in Commercial Fuels.
• Parkland delivered 18% growth in annual Adjusted EBITDA compared to
  2015, driven by growth of 39% in Retail Fuels and 25% in Supply and
  Wholesale, partially offset by a 19% decline in Commercial Fuels,
  mainly due to lower economic activity in Western Canada and warm
  weather.
• A record 10.4 billion litres of fuel and petroleum products was
  delivered in 2016, representing 8% growth compared to 2015, which was
  led by growth in the Supply and Wholesale and Retail Fuels segments.
• Company C-Store same-store sales growth in 2016 in Retail Fuels was
  3.8%.
• In the fourth quarter of 2016, Commercial Fuels delivered 50% more
  propane than Q4 2015 due to organic growth, several propane-related
  business acquisitions and comparatively colder weather.

SUPPLY

• Parkland’s Supply and Wholesale team continued to drive and support
  further growth, maintaining a commitment to ongoing improvements to
  our cost of supply as demonstrated by their 25% improvement in
  Adjusted EBITDA compared to 2015.
• Parkland completed the expansion of a transloading facility in
  Hamilton, Ontario, which is expected to continue to optimize supply,
  enhance capacity and increase capability in Parkland’s distribution
  network.

ACQUIRE

• In 2016, Parkland saw a year of strong acquisition activities,
  investing $89.2 million in acquisitions that expand our retail
  presence in Canada and the US and propane business in Canada.
• Parkland announced our largest acquisition to date with the agreement
  to acquire the majority of the Canadian business and assets of CST
  Brands, Inc.
• On October 5, 2016, Parkland closed the acquisition of the On the
  Run/Marché Express convenience store franchise system and related
  trademarks in Canada, providing a strong retail platform for Parkland
  to expand and support the Parkland Retail Fuels offering across Canada.
• Parkland continued its successful track record of seamlessly
  integrating acquisitions and maximizing synergies, led by the Pioneer
  acquisition that continues to track ahead of plan.

CONSOLIDATED FINANCIAL OVERVIEW

MD&A AND FINANCIAL STATEMENTS

The Q4 2016 Management’s Discussion and Analysis (“Q4 2016 MD&A”) and
Parkland Fuel Corporation’s audited consolidated financial statements
for the year ended December 31, 2016 (the “Annual Consolidated Financial
Statements”) provide a detailed explanation of Parkland’s operating
results for the three and twelve months ended December 31, 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 6:30 a.m. MST (8:30
a.m. EST) on Friday, March 3, 2017 to discuss the results for the three
and twelve months ended December 31, 2016.

To access the conference call by telephone, dial toll-free
1-844-889-7784 [Conference ID: 67278167]. The webcast slide presentation
can be accessed at http://edge.media-server.com/m/p/s3zd7w96.
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. It will remain available at the link above for one year and
will also be posted to www.parkland.ca.

English and French Financial Statements and Management's Discussion and
Analysis will be posted to www.parkland.ca
and SEDAR immediately after the results are released by newswire.

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, 2017 Guidance Range, the
closing of the CST Acquisition and the timing thereof, the factors and
assumptions that contribute to Parkland’s 2017 Guidance Range, 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 laws. 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
results in the 2017 Guidance Range, failure to close the CST Acquisition
on the terms negotiated or at all, failure to achieve the anticipated
benefits of acquisitions (including the CST Acquisition), failure to
obtain necessary regulatory or other third-party consents and approvals
required to complete announced acquisitions, failure to complete
announced acquisitions, 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.

Additional Guidance Considerations

The 2017 Guidance Range includes growth scenarios that build off the
2016 Adjusted EBITDA of $253.5 million and the assumption that general
market conditions, including but not limited to fuel margins and
weather, will remain the same in 2017. Additionally, the lower end of
range accounts for potential adverse market conditions in western Canada
and the Northern U.S. and the higher range accounts for contributions
from synergies relating to prior acquisitions and Parkland achieving its
previously disclosed average annual organic growth goal of 3-5%. The
2017 Guidance Range does not account for the CST Acquisition.

Other than as disclosed above, the factors and assumptions which
contribute to Parkland’s assessment of the 2017 Guidance Range are
consistent with existing Parkland disclosure and such guidance range is
subject to risks and uncertainties inherent in Parkland’s business.
Readers are directed to the Q4 2016 MD&A and Parkland’s Annual
Information Form for a description of such factors, assumptions, risks
and uncertainties.

Financial Measures

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, Adjusted Distributable Cash Flow, Adjusted 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 Section 6
of the Q4 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 Section 12 of the Q4 2016
MD&A for a discussion of non-GAAP measures and their reconciliations.

Adjusted EBITDA and Adjusted Gross Profit are measures of segment
profit. See Section 12 of the Q4 2016 MD&A and Note 24 of the Annual
Consolidated Financial Statements for a reconciliation of these measures
of segment profit. 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.

FOR FURTHER INFORMATION

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or visit www.parkland.ca.

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